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.
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All scripts & content provided by Forexobroker are for informational & educational purposes only.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.
🔵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.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.