Weis Wave Volume with alerts

The Weis Wave Volume with alerts indicator tracks and accumulates volume based on price trend movements, providing a clear visualization of supply and demand through price waves. It serves as a powerful tool for identifying trend exhaustion, potential reversals, and volume-price divergences by categorizing market action into distinct bullish and bearish volume clusters.

Usage

The Weis Wave Volume with alerts can be used to identify significant shifts in market participation. Traders often look for waves with high volume to confirm the strength of a trend, or diminishing volume in a series of waves to anticipate a reversal.

The indicator includes several markers to assist in technical analysis:

• Wave Changes: Identifies the transition from a bullish wave to a bearish wave (and vice versa).
• Height Breaches: Highlights when the current wave's volume exceeds the total volume of the previous wave, signaling increased momentum.
• Length Breaches: Marks when a wave lasts longer (in number of bars) than the previous wave.
• Historical Averages: Compares current wave volume against the historical average to identify exceptional market interest.

Details

This script is a modified version of the classic Weis Wave Volume, optimized for clearer visualization and actionable alerts. The core logic uses a price source and a "Trend Reversal Length" to determine when a new wave starts. Once a trend is established, the volume is accumulated until the price reverses by the specified threshold. To minimize false signals and "noise," transitions and markers are calculated based on price confirmation.

Settings

General Settings

• Display mode: Choose between Area, Columns, or Histogram for the volume visualization.
• Show bearish waves below zero: Toggles whether bearish waves are plotted as negative values or remain on the positive axis.
• Show average wave height: Displays a horizontal line representing the historical average volume per wave.
• Show last wave's height: Plots a line indicating the total volume reached by the most recent completed wave.
• Trend reversal length: Sets the sensitivity for trend detection; a higher value requires more sustained price movement to switch wave direction.
• Price source: Determines the source (e.g., Close, HL2) used for trend calculations.
• Average wave volume: Toggles dynamic coloring for the average wave state.

Markers

• Trade direction: Filters markers for Longs only, Shorts only, or Both.
• Marker 1 (Wave change): Triggers when a new wave direction is confirmed.
• Marker 2 (Breach of last wave height): Triggers when the current cumulative volume surpasses the total volume of the previous wave.
• Marker 3 (Breach of previous wave length): Triggers when the current wave exceeds the bar count of the previous wave.
• Marker 4 (Breach of average wave height): Triggers when the current wave volume exceeds the historical average.

FAQ

How do I use the alerts with this indicator?

You can create an alert by selecting the indicator in the TradingView Alert menu. You can choose to alert on specific markers (like wave changes) or a general "Any Marker" condition. Ensure your settings are finalized before creating the alert, as changes to inputs require the alert to be recreated.

Why does the indicator use a Trend Reversal Length?

The Trend Reversal Length helps filter out minor price fluctuations, ensuring that waves represent meaningful market moves rather than temporary noise.

Where can I find more tools like this?

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