Wavelet Trend Histogram

Wavelet Trend Histogram is a clean, non-repainting trend direction indicator designed to highlight underlying market bias using a smoothed, wavelet-inspired approach. Instead of reacting to every price fluctuation, it focuses on the slope of a higher-order trend, making it ideal for filtering noise and identifying sustained directional moves.

Internally, the indicator calculates fast and slow exponential moving averages on a selectable timeframe. The slow EMA acts as a smoothed trend backbone (the “wavelet core”), while directional changes are detected by comparing its current value to the previous bar. When the trend slope is rising, a green histogram is plotted; when the slope is falling, a red histogram appears. Because signals are based only on closed data from the selected timeframe, the histogram does not repaint and remains stable once a bar is closed.

The histogram is normalized into a compact sub-window, making trend shifts visually clear without cluttering the main chart. Optional multi-timeframe support allows traders to view higher-timeframe trend pressure while executing on lower timeframes, a powerful structure for precision entries.

How to Use

• Trend Identification: Green bars indicate bullish trend pressure; red bars indicate bearish pressure. Trade in the direction of the dominant color.

• Entry Filtering: Combine with arrow or oscillator systems. Only take buy signals when the histogram is green, and sell signals when it is red.

• Trend Shifts: A color change often signals early trend transitions or momentum loss.

• Multi-Timeframe Bias: Set the indicator to a higher timeframe to act as a directional filter for intraday strategies.

• Exit Guidance: Weakening or color flips can be used as partial or full exit confirmation.

This indicator is best suited for trend-following, breakout confirmation, and systematic trading frameworks where clarity, stability, and non-repainting behavior are essential.

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