Whale Momentum Wave Oscillator

The Whale Momentum Wave Oscillator indicator provides a comprehensive visual representation of market momentum and capital flow by combining multiple advanced technical analysis concepts into a single oscillator. It aims to help traders identify trend changes and "smart money" movements by contrasting momentum waves with capital inflow and outflow data, effectively showing when large players are entering or exiting an asset.

Usage

The indicator can be used to identify trend exhaustion, potential reversals, and market strength.

• Momentum Waves: These are derived from a combination of EVWMA and ALMA Ribbons processed through RSI and Momentum functions. When the waves are expanding and moving upwards, it indicates strong bullish momentum.
• Whale Tracking: The "Whale Trading System" overlay allows users to see capital flow. If the momentum waves are declining but capital flow remains high (or vice-versa), it may signal a "whale" accumulation or distribution phase that contradicts immediate price action.
• Fibonacci Levels: Users can enable inner and outer Fibonacci levels to identify potential support and resistance zones within the oscillator's range.

Details

The script is a composite indicator that integrates several notable technical frameworks:

• EVWMA (Elastic Volume Weighted Moving Average): Developed by QuantNomad, used as the primary input source.
• ALMA Ribbons: A variation of rumpypumpydumpy's ribbons, where sub-ribbons are averaged and processed through ta.rsi and ta.mom to create momentum waves.
• Whale Trading System: Based on concepts from Noldo, this overlay tracks capital movement to provide insight into institutional activity.
• Signal Line: Constructed by passing the close value through a sequence of EMA, RSI, WMA, and Momentum functions to provide a smoothed trigger line.

Settings

TimeFrame

• Wave TimeFrame: Sets the timeframe used for the request security calculation of the wave source.

WTS (Whale Trading System)

• Background Plot: Toggles the background coloring based on capital flow.
• Use Cumulative Volume: Switches the volume calculation from a rolling sum to cumulative volume.
• Show Whale Trading System Columns: Displays the vertical column indicators for capital flow.

Fibonacci (fib)

• Show Inner Fib Levels?: Toggles the display of inner Fibonacci retracement levels.
• Show Outer Fib Levels?: Toggles the display of outer Fibonacci extension levels.
• Fib Levels Colorized?: Enables or disables color-coding for the Fibonacci lines.
• Highest/Lowest Line Lookback: Adjusts the lookback period used to calculate the Fibonacci bounds.

Wave Calculation

• Use Coppock Curve for Wave Ribbon?: Substitutes the base source with a Coppock Curve calculation.
• Use Momentum Coppock Calculation?: Switches the Coppock calculation to a momentum-based approach.
• ALMA Sigma/Offset: Adjusts the standard deviation and offset parameters for the ALMA calculations.

Lengths

• Signal RSI/EMA Length: Controls the smoothing and period of the signal line components.
• Ribbon RSI Length: Sets the RSI period used within the wave ribbon generation.
• Momentum Length: Sets the lookback for the momentum calculation.
• EVWMA Length: Defines the period for the Elastic Volume Weighted Moving Average.

FAQ

How do I interpret the momentum waves? The waves represent the velocity of price movement relative to volume; higher waves indicate stronger trend conviction, while diverging waves often suggest a reversal.

What does the "Whale" data represent? It visualizes capital flow, showing whether significant liquidity is entering or leaving the market, which can often lead price action.

How can I access this script? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.