TDL: Wave Oscillator Confluence Pro

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WAVE OSCILLATOR CONFLUENCE PRO
Multi-Factor Confluence Scoring System
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Wave Oscillator Confluence Pro is a multi-factor confluence scoring system that synthesizes five independent market dimensions into quantified Buy/Sell strength. Instead of stacking separate indicators and visually "guessing" alignment, this script runs a Confluence Scoring Engine that weights and sums agreement across Momentum, Volatility Regime, VWAP Context, and Order-Flow-style divergence to produce graded signals (Moderate vs Strong).

Why this is not a mashup: every module feeds a single decision framework (Buy score vs Sell score → Net Confluence → graded signals + background intensity). You can audit and tune the contribution of each factor via weights and thresholds.

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📚 METHODOLOGY ATTRIBUTION
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• RSI concepts based on J. Welles Wilder's RSI
  
• TTM Squeeze mechanics inspired by John Carter's BB/KC volatility compression framework
  
• Wave-style smoothing concepts popularized by LazyBear / WaveTrend-style presentations
  
• CVD logic based on general order-flow principles, implemented here as a candle/volume-derived proxy
  

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🔢 CONFLUENCE FACTORS (5)
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1️⃣ RSI State Machine (Momentum + Transitions)

• Tracks overbought/oversold zones using a smoothed RSI "wave candle" view
  
• Maintains state memory (last extreme) and detects transition behavior (e.g., first neutral candle after an extreme)
  
• Scores extremes separately from transition states to reduce "staying extreme" noise
  

2️⃣ TTM Squeeze (Volatility Regime)

• Compression detection using Bollinger Bands vs Keltner Channels
  
• Three compression levels (Low / Medium / High)
  
• Detects squeeze release ("firing") for volatility expansion timing
  
• Optional higher timeframe squeeze mode
  

3️⃣ CVD Divergence Spikes (Order-Flow Proxy)

• Builds a cumulative delta-style line using lower timeframe intrabar volume direction (via request.security_lower_tf)
  
• Normalizes CVD vs price momentum and detects statistical spikes using StdDev thresholds
  
• Includes session/anchor-based cumulative tracking to reset/segment flow
  
• Note: This is an order-flow proxy derived from OHLC/volume behavior (not true bid/ask delta).
  

4️⃣ Session VWAP Deviation Context

• Calculates a session-based VWAP (custom ET start/end) with standard deviation bands (σ)
  
• Generates VWAP signals when price is extended beyond bands during RSI transition gating
  
• Designed to provide context around mean-reversion/extension conditions
  

5️⃣ RSI Divergence Detection (Structure Confirmation)

• Regular bullish/bearish divergence
  
• Hidden bullish/bearish divergence (continuation patterns)
  
• Automatic pivot detection with configurable lookback/range constraints
  

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🎯 SIGNAL TYPES (LEGEND)
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◆ Strong Confluence — Large Diamond → High-confidence multi-factor alignment (score ≥ Strong threshold)

◇ Moderate Confluence — Small Diamond → Moderate alignment (score ≥ Moderate threshold)

▲ VWAP Signal — Triangle → RSI transition + VWAP band breach (context layer)

● CVD Spike — Circle → CVD/price divergence spike (statistical outlier)

📍 Divergence — Label + line → Regular/hidden divergence detected

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🎨 VISUAL ELEMENTS
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• RSI Candles: Green (oversold), Red (overbought), Gray (neutral)
  
• Squeeze Dots (around the 50 line): show compression state vs release
  
• Background Shading: intensity reflects Net Confluence (Buy − Sell)
  
• Confluence Label (optional): displays Net score + Buy/Sell components
  

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⚙️ SETTINGS GUIDE
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Confluence Thresholds

• Strong Signal (default 2.5): typically requires multiple aligned factors
  
• Moderate Signal (default 1.5): fewer factors aligned
  

Weight Customization
Each factor's contribution is adjustable, including:

• RSI Extreme vs RSI Transition
  
• Squeeze Building vs Squeeze Fire
  
• VWAP Deviation
  
• CVD Spike
  
• Regular vs Hidden Divergence
  

This lets you tune the engine for different instruments/timeframes.

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📖 HOW TO USE (PRACTICAL WORKFLOW)
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1. Start with Diamonds (permission layer):
Strong diamonds = highest agreement across modules; Moderate = partial agreement.

2. Use Squeeze regime for timing:
Compression = patience; release/expansion = momentum opportunity (or risk of chasing).

3. Use VWAP deviation for context:
Best interpreted as extension/mean-reversion context when paired with RSI transitions.

4. Use CVD spikes + divergence as confirmation or warning:
Spikes often highlight disagreement between flow proxy and price; divergence highlights momentum structure shifts.

5. Combine with price action & levels:
This tool quantifies confluence — it's strongest when used alongside structure/levels/risk management.

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📝 NOTES & LIMITATIONS (TRANSPARENCY)
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• MTF Squeeze: if enabled, higher timeframe values can update until the HTF candle closes (expected HTF behavior).
  
• Pivot-based divergence: divergence signals are confirmed with a right-lookback, so they appear after pivots are established.
  
• CVD: this is not exchange bid/ask delta; results can vary by symbol/data feed.
  

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🔔 ALERTS AVAILABLE
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• Strong/Moderate Buy/Sell Confluence
  
• Regular/Hidden Bullish/Bearish Divergence
  
• High Compression Squeeze + Squeeze Fired
  
• VWAP Buy/Sell Signals
  
• CVD Bullish/Bearish Spikes
  

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⚠️ RISK DISCLAIMER
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Educational/informational use only. Trading involves substantial risk. Past performance is not indicative of future results. Do not trade solely based on indicator signals — always use risk management.

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