MorphWave Bands [JOAT]

MorphWave Bands - Adaptive Volatility Envelope System

MorphWave Bands create a dynamic price envelope that automatically adjusts its width based on current market conditions. Unlike static Bollinger Bands, this indicator blends ATR and standard deviation with an efficiency ratio to expand during trending conditions and contract during consolidation.

What This Indicator Does

• Plots adaptive upper and lower bands around a customizable moving average basis
  
• Automatically adjusts band width using a blend of ATR and standard deviation
  
• Detects volatility squeezes when bands contract to historical lows
  
• Highlights breakouts when price moves beyond the bands
  
• Provides squeeze alerts for anticipating volatility expansion
  

Adaptive Mechanism

The bands adapt through a multi-step process:

// Blend ATR and Standard Deviation
blendedVol = useAtrBlend ? (atrVal * 0.6 + stdVal * 0.4) : stdVal

// Normalize volatility to its historical range
volNorm = (blendedVol - volLow) / (volHigh - volLow)

// Create adaptive multiplier
adaptMult = baseMult * (0.5 + volNorm * adaptSens)

This creates bands that respond to market regime changes while maintaining stability.

Squeeze Detection

A squeeze is identified when band width drops below a specified percentile of its historical range:

• Background highlighting indicates active squeeze conditions
  
• Low percentile readings suggest compressed volatility
  
• Squeeze exits often precede directional moves
  

Inputs Overview

• Band Length — Period for basis calculation (default: 20)
  
• Base Multiplier — Starting band width multiplier (default: 2.0)
  
• MA Type — Choose from SMA, EMA, WMA, VWMA, or HMA
  
• Adaptation Lookback — Historical period for normalization (default: 50)
  
• Adaptation Sensitivity — How much bands respond to volatility changes
  
• Squeeze Threshold — Percentile below which squeeze is detected
  

Dashboard Information

• Current trend direction relative to basis and bands
  
• Band width percentage
  
• Squeeze status (Active or None)
  
• Efficiency ratio
  
• Current adaptive multiplier value
  

How to Use It

• Look for squeeze conditions as potential precursors to breakouts
  
• Use band touches as dynamic support/resistance references
  
• Monitor breakout signals when price closes beyond bands
  
• Combine with momentum indicators for directional confirmation
  

Alerts

• Upper/Lower Breakout — Price exceeds band boundaries
  
• Squeeze Entry/Exit — Volatility compression begins or ends
  
• Basis Crosses — Price crosses the center line
  

This indicator is provided for educational purposes. It does not constitute financial advice.

— Made with passion by officialjackofalltrades