OBV WaveTrend Flow

OBV WaveTrend Pressure — A Volume-Powered Momentum Oscillator

OBV WaveTrend Pressure combines Hybrid OBV (volume × price delta) with the classic LazyBear WaveTrend framework to create a volume-weighted momentum oscillator that highlights real buying/selling pressure before price reacts.

While standard WaveTrend uses price averages alone, this tool feeds a cumulative hybrid OBV source into WT1/WT2, producing a much more sensitive, order-flow-aware momentum signal. The result is a clean, MACD-style histogram built from the slope of WT1, revealing when volume-backed momentum flips from bullish to bearish and vice-versa.

This is designed as a companion to volatility tools (e.g., TTM Squeeze, SQZMOM) and standard price-based WaveTrend indicators.

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Features

1. Hybrid OBV Source (Vol × ΔPrice)

Captures true directional volume pressure, giving earlier and more reliable inflection points than price-based oscillators.

2. WaveTrend Applied to OBV

Applies LazyBear’s WT logic to a volume-driven source:
• WT1 (fast)
• WT2 (signal)
• Optional slope-aware color themes

3. MACD-Style Pressure Histogram

Shows momentum contraction/expansion clearly:
• Bright green/blue → Strong bull pressure
• Pale green/blue → Weakening bull
• Bright red → Strong bear pressure
• Pale red → Weakening bear

4. Dynamic OB/OS Bands

Adaptive overbought/oversold computed from:
• Rolling mean of WT1
• Rolling standard deviation
Helps identify exhaustion relative to market conditions, not fixed numbers.

5. Zero-Line Momentum Flips (with alerts)

Alerts fire when:
• WT1 slope crosses above zero → Bull momentum shift
• WT1 slope crosses below zero → Bear momentum shift

6. Optional Price Bar Coloring

Mirror the histogram state onto price bars for fast visual bias confirmation.

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How to Use

Bullish Signals
• Histogram flips positive
• WT1 rising
• WT1 or WT2 near dynamic oversold zone
• Useful for positioning early in momentum cycles

Bearish Signals
• Histogram flips negative
• WT1 falling
• WT1 or WT2 near dynamic overbought zone

Best Applications
• Trend continuation entries
• Confirming TTM squeeze setups
• Early identification of pressure reversals
• Pairing with price-based WaveTrend for dual confirmation

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Why It Works

WaveTrend is already one of the most reliable oscillators for structure and reversals — but this version feeds it volume pressure instead of price.
Volume often shifts before candles do, making this a leading indicator in many cases.