OPEN-SOURCE SCRIPT
Wavelet Candlestick Slope Follower-Master Edition
Here is a short description of this script:
This is a **Trend Following strategy** that utilizes advanced mathematics—the **Wavelet Transform**—to filter out market noise.
**Key Features:**
1. **Synthetic Candles:** The script does not analyze raw prices. Instead, it constructs "Wavelet Candles"—smoothed candles created through mathematical convolution of prices with a specific wavelet "kernel" (e.g., Mexican Hat, Morlet, Haar).
2. **Auto-Correction (Normalization):** This is the most critical technical feature of this code. The script automatically normalizes the weights. This ensures that even when using complex mathematical shapes (like the Mexican Hat), the output price remains accurate to the real chart scale and is not distorted.
3. **Strategy Logic:** The logic is very straightforward—the system enters a **Long** position when the smoothed closing price (`w_close`) is rising, and closes the position when it starts to fall.
4. **Visualization:** It draws new, cleaner candles (green/red) on the chart, revealing the "true" trend structure after filtering out temporary fluctuations.
This is a example of use idea of wavelet candle
This is a **Trend Following strategy** that utilizes advanced mathematics—the **Wavelet Transform**—to filter out market noise.
**Key Features:**
1. **Synthetic Candles:** The script does not analyze raw prices. Instead, it constructs "Wavelet Candles"—smoothed candles created through mathematical convolution of prices with a specific wavelet "kernel" (e.g., Mexican Hat, Morlet, Haar).
2. **Auto-Correction (Normalization):** This is the most critical technical feature of this code. The script automatically normalizes the weights. This ensures that even when using complex mathematical shapes (like the Mexican Hat), the output price remains accurate to the real chart scale and is not distorted.
3. **Strategy Logic:** The logic is very straightforward—the system enters a **Long** position when the smoothed closing price (`w_close`) is rising, and closes the position when it starts to fall.
4. **Visualization:** It draws new, cleaner candles (green/red) on the chart, revealing the "true" trend structure after filtering out temporary fluctuations.
This is a example of use idea of wavelet candle
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.