Wavelet Bands is a trend-adaptive volatility indicator that blends EMA trend structure with wavelet-style detail analysis to create dynamic price bands. Instead of using fixed deviation methods, the bands expand and contract based on the real-time difference between a fast and slow EMA, allowing them to react quickly during impulsive moves and tighten during consolidation.

The core trend is defined by a slow EMA, which represents the dominant market direction. The difference between the fast and slow EMA acts as a wavelet “detail” component, measuring short-term momentum around the trend. This detail is multiplied to form adaptive upper and lower bands that naturally widen in strong trends and compress in ranging markets.

The main trend line automatically changes color:

The result is a clean, non-repainting structure that highlights trend direction, momentum strength, and dynamic support/resistance zones directly on the price chart.