CryptoMoves v3

CryptoMoves v3 User Guide
This comprehensive guide will help you interpret the various indicators in the CryptoMoves v3 Pine Script. The script combines multiple technical indicators to provide a holistic view of market conditions.

Wave Trend Indicator
The Wave Trend indicator is the core component of this script, offering insights into trend direction and potential reversals.
Interpretation:
WT Wave 1 and WT Wave 2: These are plotted as area charts. When WT1 crosses above WT2, it's generally bullish, and when it crosses below, it's bearish1.
Overbought/Oversold Levels: The script uses multiple levels (-100, -60, -53, 53, 60, 100) to indicate extreme conditions1.

VWAP: This additional wave provides a faster-moving trend indicator1.
Key Signals:
Buy Signal: Occurs when WT1 crosses above WT2 in oversold territory (below -60) and Stochastic RSI is below 201.
Sell Signal: Triggers when WT1 crosses below WT2 in overbought territory (above 60) and Stochastic RSI is above 801.

Stochastic RSI
This indicator combines the sensitivity of RSI with the ranging capabilities of Stochastic oscillator.
Interpretation:
K and D Lines: The faster K line (blue) and slower D line (color varies) are plotted1.
Overbought/Oversold: Levels are set at 80 (overbought) and 20 (oversold)1.
Crossovers: When K crosses above D, it's potentially bullish; when K crosses below D, it's potentially bearish1.

RSI + MFI (Money Flow Index)
This custom indicator combines Relative Strength Index with Money Flow to gauge buying and selling pressure.
Interpretation:
Color Coding: Green indicates positive money flow (bullish), while red suggests negative flow (bearish)1.
Zero Line: Crossing above zero is bullish, below is bearish1.

ADX (Average Directional Index)
ADX helps determine the strength of a trend, regardless of its direction.
Interpretation:
ADX Line: Values above 25 indicate a strong trend, below 25 suggest a weak trend1.
+DI and -DI: When +DI is above -DI, the trend is bullish; when -DI is above +DI, the trend is bearish.
Background Color: Green background indicates a strong trend, red indicates a ranging market1.

RSI Divergence
This component identifies potential trend reversals by comparing price action with RSI movements.

Types of Divergences:
Regular Bullish: Price makes lower lows, but RSI makes higher lows (potential upward reversal)1.

Hidden Bullish: Price makes higher lows, but RSI makes lower lows (potential continuation of uptrend)1.

Regular Bearish: Price makes higher highs, but RSI makes lower highs (potential downward reversal)1.

Hidden Bearish: Price makes lower highs, but RSI makes higher highs (potential continuation of downtrend)1.

Woodie CCI (Commodity Channel Index)
The Woodie CCI helps identify cyclical trends in price.
Interpretation:
Overbought/Oversold: Default levels are set at +100 (overbought) and -100 (oversold)1.
Trend Direction: CCI above zero suggests an uptrend, below zero suggests a downtrend1.
Divergences: Can be used to spot potential reversals when price and CCI move in opposite directions1.

Combining Indicators for Decision Making
Strong Buy Signal: Occurs when Wave Trend shows a bullish crossover in oversold territory, Stochastic RSI is oversold, RSI shows bullish divergence, and Woodie CCI is oversold.
Strong Sell Signal: Triggers when Wave Trend shows a bearish crossover in overbought territory, Stochastic RSI is overbought, RSI shows bearish divergence, and Woodie CCI is overbought.
Trend Confirmation: Use ADX to confirm the strength of the trend identified by other indicators

To optimize the CryptoMoves v3 indicator for different timeframes, we can adjust the input parameters. Here's a table with suggested optimizations for various timeframes:

Optimization Rationale

Shorter Timeframes (5-minute, 15-minute):
Use shorter lengths for faster-moving indicators to capture quick market movements.
Reduce smoothing periods to increase sensitivity.

Medium Timeframes (1-hour, 4-hour):
Use the default or slightly increased lengths to balance between responsiveness and noise reduction.
Moderate smoothing to filter out minor fluctuations.

Longer Timeframes (1-day, 1-week, 1-month):
Increase lengths and smoothing periods to focus on longer-term trends.
Reduce sensitivity to short-term price movements.

Additional Considerations
Wave Trend Levels: The overbought and oversold levels (53, 60, 100, -53, -60, -100) can remain consistent across timeframes as they represent standard deviation multiples.
Stochastic RSI Levels: The overbought (80) and oversold (20) levels are typically kept constant across timeframes.

ADX Threshold: The default of 25 is generally applicable across timeframes, but you might consider increasing it slightly (to 30) for longer timeframes to identify stronger trends.
Woodie CCI Levels: The overbought (100) and oversold (-100) levels are standard and can remain consistent across timeframes.

Remember that these are suggested optimizations based on general principles. It's crucial to backtest these settings on your specific trading instruments and adjust them according to your trading strategy and risk management rules. The optimal settings may vary depending on the specific asset and market conditions