Wavelet Energy Cascade [forexobroker]
Wavelet Energy Cascade decomposes close into 4 dyadic Haar wavelet scales (lengths 1, 2, 4, 8) and tracks their energies. Coarse-scale dominance over fine-scale signals trending; fine-scale dominance signals noise. The coarse Haar smoothed line provides the entry trigger. Distinct from any moving average: wavelets are a multi-resolution decomposition with explicit energy bookkeeping per scale.
🔶 ALGORITHM
1. Haar coefficient at scale s = (avg of s most recent - avg of s prior) / sqrt(2).
2. Compute coefficients h1, h2, h4, h8.
3. Energy_s = math.sum(h_s^2, lookback) — squared coefficients summed over a rolling window.
4. fine = e1 + e2; coarse = e4 + e8.
5. Trending regime when coarse > k * fine.
6. Coarse Haar smoother (sma(close, 8)) provides the entry-trigger reference.
🔶 SIGNAL LOGIC
- Buy: trending AND close crosses coarse line up AND h8 > 0 AND not already long AND cooldown elapsed AND barstate.isconfirmed.
- Sell: trending AND close crosses coarse line down AND h8 < 0.
- Position-lock state machine.
🔶 INPUTS
- Energy Lookback (default 40)
- Coarse / Fine Dominance k (default 1.5)
- Cooldown Bars (default 4)
- Visual: dashboard, glow, coarse line, buy / sell colors
🔶 ALERTS
WEC Buy, WEC Sell, WEC Any Signal, WEC Trend Start, WEC Trend End, WEC Strong Trend, WEC Cross Up, WEC Cross Down, WEC Webhook JSON.
🔶 LIMITATIONS
- Haar is the simplest wavelet (orthogonal, but with sharp edges); for smoother decomposition, Daubechies-like wavelets would help — at higher Pine cost.
- Only 4 scales; missing very-low or very-high frequencies if they matter for the asset.
- Energy lookback dominates the smoothing trade-off; smaller = more responsive, noisier.
- The h8 sign gate ensures direction agrees with the coarse-scale wavelet; rare divergences are filtered.
🔶 ALGORITHM
1. Haar coefficient at scale s = (avg of s most recent - avg of s prior) / sqrt(2).
2. Compute coefficients h1, h2, h4, h8.
3. Energy_s = math.sum(h_s^2, lookback) — squared coefficients summed over a rolling window.
4. fine = e1 + e2; coarse = e4 + e8.
5. Trending regime when coarse > k * fine.
6. Coarse Haar smoother (sma(close, 8)) provides the entry-trigger reference.
🔶 SIGNAL LOGIC
- Buy: trending AND close crosses coarse line up AND h8 > 0 AND not already long AND cooldown elapsed AND barstate.isconfirmed.
- Sell: trending AND close crosses coarse line down AND h8 < 0.
- Position-lock state machine.
🔶 INPUTS
- Energy Lookback (default 40)
- Coarse / Fine Dominance k (default 1.5)
- Cooldown Bars (default 4)
- Visual: dashboard, glow, coarse line, buy / sell colors
🔶 ALERTS
WEC Buy, WEC Sell, WEC Any Signal, WEC Trend Start, WEC Trend End, WEC Strong Trend, WEC Cross Up, WEC Cross Down, WEC Webhook JSON.
🔶 LIMITATIONS
- Haar is the simplest wavelet (orthogonal, but with sharp edges); for smoother decomposition, Daubechies-like wavelets would help — at higher Pine cost.
- Only 4 scales; missing very-low or very-high frequencies if they matter for the asset.
- Energy lookback dominates the smoothing trade-off; smaller = more responsive, noisier.
- The h8 sign gate ensures direction agrees with the coarse-scale wavelet; rare divergences are filtered.
🔵Gain access to our powerful tools : kestutisbalciunas.com/tradingview/
🔵Join our free telegram for updates : t.me/algotradingedge
All scripts & content provided by Forexobroker are for informational & educational purposes only.
🔵Join our free telegram for updates : t.me/algotradingedge
All scripts & content provided by Forexobroker are for informational & educational purposes only.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.
🔵Gain access to our powerful tools : kestutisbalciunas.com/tradingview/
🔵Join our free telegram for updates : t.me/algotradingedge
All scripts & content provided by Forexobroker are for informational & educational purposes only.
🔵Join our free telegram for updates : t.me/algotradingedge
All scripts & content provided by Forexobroker are for informational & educational purposes only.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.