Indicators
WaveTrend Momentum Trading Indicator

WaveTrend Momentum Trading Indicator

By
Zeiierman
on
June 11, 2024

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WaveTrend Momentum is a sensitive fast-moving oscillator that responds quickly to changes in price. The indicator shows how strong the price move is and where the momentum starts and stops. We have a solid strategy only using this indicator with around 75-85% win rate and a risk-reward ratio up to 1:10. Continue reading to access the complete strategy!

What is WaveTrend Momentum?

WaveTrend Momentum analyzes the price action and follows the market movements. The algorithm filters out price noise and returns an accurate reading of the current trend, strength, and momentum. The height of the histogram represents how strong the current price move is. In addition, it's much easier to compare price moves to each other, which gives insights into how the current price action behaves relative to the previous. Price movements are essential in trading regardless of what kind of trader you are. WaveTrend Momentum is a beginner-friendly indicator to keep track of those movements.

How To Use WaveTrend Momentum Oscialltor?

The indicator is excellent for identifying potential turning points in the market. For example, some professional traders only use price action in their trading. With the WaveTrend Momentum (Expo) indicator, you have the same edge as they have when following the market movement and its price action. In combination with the Trend Strength, it becomes easy to enter the market pullbacks and follow the market trend. In addition, we can also detect where momentum starts and when it stalls. When to enter the market and when it's better to stay away. With our inbuilt features, It's become easy when Traders should consider taking their profit. However, if the trend strength is in our favor, we have a more significant edge to take partial profits and stay with the strength for as long as possible. Moreover, with the indicator features, we can detect potential market reversals by using divergences or entering the market in extreme conditions.1. Use the indicator to identify potential turning points.2. Use the indicator to identify where momentum starts and stalls.3. Use the indicator to identify the direction of the trend.4. Use the indicator to find divergences.5. Use the indicator to identify potential entry and exit areas.

The indicator can be used standalone or as a part of your current trading strategy.

WaveTrend Momentum Features

Extremes

This powerful feature shows where the market is in an extreme condition, similar to an overbought and oversold area. When the market is in an extreme situation, it is most likely to reverse.

Trend Strength

The trend strength analyses not only the trend but also considers market impulses. The higher the trend strength line is, the higher the bullish strength, and the lower the line is, the stronger the bearish strength. Likewise, if the trend strength line is above or below the zero level, if it's below, the bears are in charge, and above, the bulls have the advantage.

DIVERGENCES  

All types of momentum oscillator indicators produce divergences, and so does WaveTrend Momentum (Expo). Divergences occur when the oscillator deviates from the trending price action. Bullish divergence is then when the trending price makes a lower low, but the oscillator makes a higher low. Bearish divergence is then when the trending price makes a higher high, but the oscillator makes a lower high.

Impulses

Market impulses always happen but can be hard to spot for a non-trained eye. The feature helps the trader spot market impulses and displays them at the end of a price move. The impulses warn that the price will likely reverse its current market move in the opposite direction.

There are built-in ALERTS in this indicator!

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Access the WaveTrend Momentum Indicator on TradingView

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