Channel WaveTrend

What the signal is about

It tells you two things: whether the market is overbought or oversold (the waves pushing into the upper/lower bands), and the turn in momentum (the two waves crossing each other). The blue area between the waves is just a visual cue for how strong/fading that momentum is.

When it's best used

It shines in ranging or choppy markets and for timing entries/exits within a trend — catching short-term reversals and pullbacks. It's a swing-trading and intraday tool more than a long-term one. Its weakness is strong trending markets, where it can sit "overbought" for a long time and fire early signals — so it works best as a timing layer on top of a directional bias from something else (trend, structure, fundamentals).

How to use it

• Cross + extreme zone is the highest-quality signal:  green crossing above  red while down in the oversold zone (around -60) suggests a bounce; crossing below  red up in the overbought zone (around +60) suggests a pullback.
• Crosses near the zero line are weaker — treat them as lower-confidence.
• Divergence (price makes a new high/low but the oscillator doesn't) is its strongest reversal warning.

green (the solid line — the faster, main wave)

red (the dashed line — the slower, smoothing wave)