Smart WaveTrend Crossover

█ OVERVIEW
Smart WaveTrend Crossover is an indicator based on WaveTrend crossovers, designed to reduce the number of false signals typically produced by classic oscillator crossovers.
Instead of triggering a signal immediately at the line crossover, the indicator requires additional confirmation in the form of a price breakout from a box, created at the moment of the WaveTrend signal.

The script also includes:
- a trend filter based on a separate WaveTrend
- “fog” visualization
- candle coloring based on trend direction
- fully configurable entry signals
- automatic Take Profit / Stop Loss levels
- a real-time TP/SL table

█ CONCEPTS
Classic WaveTrend crossovers often generate noise, especially during consolidation.
Smart WaveTrend Crossover attempts to address this issue using a breakout confirmation mechanism:
- at the moment WT1 crosses WT2, a horizontal price box is created
- a trade signal is generated only when price closes outside the box
- an optional trend filter limits signals to the dominant market direction

The trend filter is built on a WaveTrend crossover using larger, slower parameters, independent from the signal-generating WaveTrend.
This allows short-term momentum to be separated from the broader market direction, and all trend filter parameters can be freely adjusted.

WaveTrend signal settings are not identical to the original / classic values.
They are configured to generate a higher number of signals, which works better in combination with breakout boxes and confirmation logic.
Signal sensitivity can be easily adjusted by modifying channel length and averaging parameters.

By default, show_only_matching is enabled:
- bullish crossover → bullish breakout only (BUY)
- bearish crossover → bearish breakout only (SELL)

█ FEATURES
WaveTrend (Signals & Trend):
- two independent WaveTrend setups:
- one for signal generation
- one for trend determination
- signal parameters configured more aggressively than classic defaults
- trend filter based on a slower WaveTrend crossover
- trend direction visualized using directional fog, not a histogram

WaveTrend Input Explanation:
- Channel Length – controls WaveTrend reaction speed (shorter = more signals)
- Average Length – smoothing of the main WT1 line
- MA Length – smoothing of the signal line WT2
- Source – price source used in calculations (default: hlc3)

Fog (Visualization):
- visual representation of market pressure in the direction of the trend
- fog height based on average candle size × offset_mult
- adjustable transparency or fully disableable

Breakout Boxes:
- a box is created on every WaveTrend direction change
- default height based on the signal candle range
- optional box expansion using average candle size × box_multiplier

Signals:
- triangles or “BUY / SELL” labels
- direction matching filter (show_only_matching)
- option to display all breakouts regardless of crossover direction
- built-in BUY and SELL alerts

Visual Settings:
- candle coloring based on WaveTrend trend direction
- full control over bullish and bearish colors

Risk Management – TP / SL:
- automatic TP1, TP2, TP3 and SL levels
- two calculation modes:
- Candle Multiplier – based on average candle range
- Percentage – percentage from entry price
- separate parameters for each level
- TP/SL lines drawn on the chart
- real-time TP/SL price table

█ HOW TO USE
Add the indicator to your TradingView chart → Indicators → search “Smart WaveTrend Crossover”

Key settings:
- WaveTrend Settings for Signals – signal sensitivity
- WaveTrend Settings for Trend – market direction filter
- Signal Settings – signal type and box logic
- Fog – pressure visualization
- Risk Management – TP/SL configuration

Signal meaning:
- BUY → upward breakout from a box after a bullish crossover
- SELL → downward breakout from a box after a bearish crossover
- visible boxes → breakout watch zones
- fog and candle color → current market direction

█ APPLICATIONS
Standalone entry system
- entering directly on BUY / SELL signals
- or entering on trend color change

Filter for price-action strategies
- using WaveTrend signals as directional confirmation
- e.g. level breakout + WaveTrend confirmation = entry

Trend indicator
- trading other tools only in the direction of the WaveTrend trend
- e.g. RSI breaks above 50 while WaveTrend trend is bullish

█ NOTES
- Default settings are a starting point and may require adjustment
- The indicator works best as part of a broader trading system