Indicator · DP_TrendWave

Trend and momentum, together.

DP_TrendWave plots two Money Flow Index reads at different speeds in one pane, a fast line and a slower trend spine, and marks a turn only once it actually confirms.

Not for sale documented here in full Finished scripts, published as reference

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Fig. 1 The fast MFI (trading ink) and the slower trend spine (grey) plotted together, with the ribbon fill between them. Signals mark only where a line closed at or beyond the 80/20 band and turned back. Drawn from generated data, not a capture.

01 Function

Two reads, one pane

DP_TrendWave is a momentum oscillator that runs in a separate pane below price. It reads money flow, the same volume-weighted calculation behind a standard Money Flow Index, and computes it twice at two different lengths in parallel: a fast line and a slower trend spine.

A trader watches for the two lines to agree on direction and for price to actually turn rather than just brush an extreme. A live text label in the corner of the pane reads BULL, BEAR or NEUTRAL, so the current read is stated in words rather than left for the eye to interpret from where two lines happen to sit.

It is a general-purpose oscillator, not a futures-session tool. It works on any symbol and timeframe that carries volume data.

02 Method

The ribbon is the signal

The fast line and the slow trend spine are the same Money Flow Index calculation run twice, at two different lengths. Each splits hlc3 × volume into positive and negative flow, sums both sides over its own window, and expresses the ratio as a 0 to 100 read the way an RSI does. The fast line reacts to a shorter window (14 bars by default), the slow spine to a longer one (50 bars), and the filled area between them, the ribbon, is what the pane is built to show: whether momentum and trend currently agree.

A signal does not fire on every touch of the 80/20 overbought/oversold band. It fires only on a confirmed peak, meaning the fast line closed at or beyond the band on the previous bar and is turning back this bar. An optional volume gate adds a second condition on top of that: the current bar's volume has to clear 1.3 times its 20-bar average before the signal is allowed to fire, so a reversal with no participation behind it stays unsignalled.

03 Settings

What you tune

MFI Length: 14 · the fast line
Trend Length: 50 · the slow spine
Overbought / Oversold: 80 / 20
Smoothing type: SMA, EMA, WMA, HMA, DEMA or TEMA
Volume confirmation: On, 1.3× the 20-bar average
Alternate buy/sell: On

04 Spec

Specification

Type: Indicator
Pine version: v6
Chart placement: Separate pane
Plots: Fast MFI, trend spine, signal line, ribbon fill
Alert conditions: Buy, Sell, Cross above 50, Cross below 50
Intended market: Any symbol with volume data
Intended timeframe: Any

05 Reference

Published as reference

This script is finished and documented in full on this page. It is not for sale.

Questions about this script: deishmedia@gmail.com.