OPEN-SOURCE SCRIPT
Wave Velocity Directional 2.1
Wave Velocity Directional 2.1
Wave Velocity Directional 2.1 is an analytical tool designed to evaluate the structural quality of Wave 1 vs Wave 2 using velocity comparison, momentum filtering, and trend alignment.
The indicator measures the directional velocity of waves, determines whether the impulse structure is healthy, and adds momentum and trend filters (CCI and EMA200) locked to the end of Wave 2.
This helps traders evaluate whether a potential Wave 3 expansion has favorable structural conditions.
Core Concept
The script compares the velocity of Wave 1 and Wave 2.
Velocity is defined as:
Directional Range / Number of Bars
A strong impulse structure typically shows:
Wave 1 faster than Wave 2
Wave 2 slower corrective movement
The ratio between the velocities indicates the structural strength of the setup.
Velocity Ratio Interpretation
Ratio Interpretation
> 1.5 Strong impulse
1.2 – 1.5 Healthy structure
1.0 – 1.2 Weak impulse
< 1.0 Structural warning
This provides a quick diagnostic of whether the market structure behaves like a typical impulse–correction sequence.
CCI Filter (Momentum)
The indicator evaluates CCI at the exact candle where Wave 2 ends.
Rules:
Longs are blocked if CCI ≥ Long Max
Shorts are blocked if CCI ≤ Short Min
Default values:
Long Max = 80
Short Min = -80
This prevents entering trades when the market is already overextended.
EMA200 Trend Filter
The script also checks trend alignment using EMA200.
Conditions evaluated at Wave 2 end:
LONG allowed if:
Close > EMA200
EMA200 is rising
SHORT allowed if:
Close < EMA200
EMA200 is falling
This ensures trades are aligned with the dominant trend.
Compact Dashboard
The indicator displays a compact table with:
Wave 1 velocity
Wave 2 velocity
Velocity ratio
Structural status
CCI value at Wave 2 end
CCI trade permissions
EMA200 value at Wave 2 end
Trend-based trade permissions
Everything is calculated relative to manually selected wave anchors.
How to Use
Select the four anchor points:
Wave 1 start
Wave 1 end
Wave 2 start
Wave 2 end
The indicator automatically calculates:
velocity
structural ratio
momentum condition
trend alignment
Use the combined signals to evaluate the probability of a Wave 3 continuation.
Version 2.1 Improvements
Compared to the previous version:
Added CCI momentum filter
Added EMA200 trend filter
Added trade permission status (LONG / SHORT)
Improved dashboard diagnostics
Important Notes
This tool is designed as a structure validation assistant, not a standalone trading system.
It is most effective when used together with:
wave structure analysis
liquidity / imbalance concepts
higher timeframe context
Wave Velocity Directional 2.1 is an analytical tool designed to evaluate the structural quality of Wave 1 vs Wave 2 using velocity comparison, momentum filtering, and trend alignment.
The indicator measures the directional velocity of waves, determines whether the impulse structure is healthy, and adds momentum and trend filters (CCI and EMA200) locked to the end of Wave 2.
This helps traders evaluate whether a potential Wave 3 expansion has favorable structural conditions.
Core Concept
The script compares the velocity of Wave 1 and Wave 2.
Velocity is defined as:
Directional Range / Number of Bars
A strong impulse structure typically shows:
Wave 1 faster than Wave 2
Wave 2 slower corrective movement
The ratio between the velocities indicates the structural strength of the setup.
Velocity Ratio Interpretation
Ratio Interpretation
> 1.5 Strong impulse
1.2 – 1.5 Healthy structure
1.0 – 1.2 Weak impulse
< 1.0 Structural warning
This provides a quick diagnostic of whether the market structure behaves like a typical impulse–correction sequence.
CCI Filter (Momentum)
The indicator evaluates CCI at the exact candle where Wave 2 ends.
Rules:
Longs are blocked if CCI ≥ Long Max
Shorts are blocked if CCI ≤ Short Min
Default values:
Long Max = 80
Short Min = -80
This prevents entering trades when the market is already overextended.
EMA200 Trend Filter
The script also checks trend alignment using EMA200.
Conditions evaluated at Wave 2 end:
LONG allowed if:
Close > EMA200
EMA200 is rising
SHORT allowed if:
Close < EMA200
EMA200 is falling
This ensures trades are aligned with the dominant trend.
Compact Dashboard
The indicator displays a compact table with:
Wave 1 velocity
Wave 2 velocity
Velocity ratio
Structural status
CCI value at Wave 2 end
CCI trade permissions
EMA200 value at Wave 2 end
Trend-based trade permissions
Everything is calculated relative to manually selected wave anchors.
How to Use
Select the four anchor points:
Wave 1 start
Wave 1 end
Wave 2 start
Wave 2 end
The indicator automatically calculates:
velocity
structural ratio
momentum condition
trend alignment
Use the combined signals to evaluate the probability of a Wave 3 continuation.
Version 2.1 Improvements
Compared to the previous version:
Added CCI momentum filter
Added EMA200 trend filter
Added trade permission status (LONG / SHORT)
Improved dashboard diagnostics
Important Notes
This tool is designed as a structure validation assistant, not a standalone trading system.
It is most effective when used together with:
wave structure analysis
liquidity / imbalance concepts
higher timeframe context
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.