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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
오픈 소스 스크립트
트레이딩뷰의 진정한 정신에 따라, 이 스크립트의 작성자는 이를 오픈소스로 공개하여 트레이더들이 기능을 검토하고 검증할 수 있도록 했습니다. 작성자에게 찬사를 보냅니다! 이 코드는 무료로 사용할 수 있지만, 코드를 재게시하는 경우 하우스 룰이 적용된다는 점을 기억하세요.
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.
오픈 소스 스크립트
트레이딩뷰의 진정한 정신에 따라, 이 스크립트의 작성자는 이를 오픈소스로 공개하여 트레이더들이 기능을 검토하고 검증할 수 있도록 했습니다. 작성자에게 찬사를 보냅니다! 이 코드는 무료로 사용할 수 있지만, 코드를 재게시하는 경우 하우스 룰이 적용된다는 점을 기억하세요.
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.