Wave Surge [sma]

Overview
Wave Surge is indicator that visualizes market waves through dynamic price oscillations around a moving average baseline. It combines wave analysis with RSI filtering to identify trend strength and potential reversals.

How It Works

Core Calculation
The indicator calculates a wave pattern by:
1. Computing a baseline using the average of highest/lowest prices over the specified period
2. Determining a keltner-style center point between this baseline and price SMA
3. Creating a linear regression of the price deviation from this center
4. Generating an adaptive signal line that responds to crossover events

Visual Components
- **Base MA Line**: A moving average (SMA or EMA) that changes color based on RSI zones
- Cyan overlay: RSI is overbought (default >70)
- Yellow overlay: RSI is oversold (default <30)
- Gray: Neutral RSI zone

- Wave Fill: The dynamic area between the MA and wave level
- Green shades: Bullish momentum (wave > 0)
- Red/Orange shades: Bearish momentum (wave < 0)
- Color intensity indicates wave strength (accelerating vs decelerating)


Key Features
- Wave Intensity Control: Adjustable parameter (0.1-2.0) to control wave amplitude
- MA Type Selection: Choose between SMA or EMA for the baseline
- RSI Integration: Hidden RSI filter adds context to the moving average color
- Adaptive Signal: The signal line dynamically adjusts to crossover events
- Fully Customizable Colors: All visual elements can be customized


Originality Statement
This indicator uses a unique combination of:
- Custom wave calculation based on price deviation from keltner-style center
- Linear regression applied to normalized price distance
- Adaptive signal line that recalculates on wave direction changes
- Multi-layered RSI integration for contextual MA coloring

The wave fill visualization creates a dynamic oscillating band that responds to both momentum strength and direction changes.

For educational purposes only. Not financial advice.