Trend Signals
The Trend Signals combine tested powerful ideas into a single tool. They are designed to follow trends and reduce noise in the market using low pass filtering methods. There are two types of signals founds in this toolkit; normal and power signals. Power signals are signals with a + in them indicating that the signal may be more likely to play out.
KEY FEATURES
Signals
Standard signals
(represented by simple triangles) indicate regular trend-following opportunities.
Power signals +
(triangles with a +) suggest stronger momentum, meaning these signals are more likely to play out successfully.
Power Bottom Signals
These signals highlight high-probability bullish setups, typically appearing after strong downside moves or oversold conditions
Triggered at potential market bottoms based on momentum and reversal criteria.
Designed to filter out weak bounces and highlight stronger upside potential.
Power Top Signals
These signals identify high-probability bearish setups, typically appearing after strong upside moves or overbought conditions.
Triggered at potential market tops using momentum exhaustion and reversal dynamics.
Designed to filter out weak pullbacks and highlight stronger downside potential.
Serve as the inverse of Power Bottoms (yellow), offering symmetrical logic for short setups.
Take Profit System
An advanced tool that helps traders lock in profits systematically based on trend behavior and market volatility.
The system is designed to automatically plot logical profit-taking levels after an entry signal appears. It reduces emotional decision-making and helps scale out of trades with precision.
Activation: Once a valid long ▲ or short ▼ signal is printed, the system immediately begins projecting potential take profit levels.
Modes Available
Dynamic:
Automatically calculates up to 6 TP levels based on current volatility, trend strength, and price behavior. Ideal for trending markets where fixed targets may be limiting.
Fixed:
Uses trader-defined TP1 and TP2 values (e.g. 3%, 5%) for consistent, rule-based exits. Best for short-term strategies or high-RR scalping systems.
Disabled:
Turns off TP plotting completely for traders who prefer full manual exits or external risk management systems.
Smart Bands
Smart Bands are dynamic visual bands that automatically adapt to the current price action and trend conditions.
They expand and contract based on volatility and trend strength.
Color and width of the bands adjust in real-time to show momentum and direction.
Useful for identifying clean trends, filtering chop, and spotting early signs of reversals or trend exhaustion.
Smart Bands change dynamically—during strong trends, their color becomes more intense, while in sideways markets, the bands fade and widen, signaling weaker momentum and potential consolidation
Bullish and Bearish Retest Signals
Smart Bands also generate high-probability retest signals:
Bullish Retest: Triggered when price pulls back to test the lower edge of a bullish band and shows strength again.
Bearish Retest: Triggered when price retraces into the upper edge of a bearish band and then rejects downward.
These signals are helpful for catching continuation entries after the initial trend breakout, often aligning with trend-following strategies.
Auto Optimization
Auto Optimization intelligently tunes the trend signal sensitivity without manual adjustment.
It backtests the last 2000 bars to determine the most effective signal setting based on Net Profit and %Win Rate.
Automatically applies the best-performing sensitivity for current market conditions.
Saves time and ensures consistently optimized results across different timeframes or assets.
Helps reduce false signals and improve the quality of entries.
The Optimal Sensitivity Display is a new feature added to the dashboard when Auto Optimization is enabled or disable in Market Waves Pro. It shows the exact sensitivity value that Auto Optimization has determined to be most effective based on recent market performance.
HOW TO USE
Signals – Usage Example
A trader is looking for clear, rule-based entries without needing to constantly monitor multiple indicators.
They enable the Signals toggle and set the sensitivity level (or use Auto Optimization for best results).
A long signal (▲) appears at an oversold zone — this is often supported by wide green Smart Bands and sometimes a Power Signal [+], indicating strong reversal potential.
The trader enters a long position on the next candle close.
As price moves up, dynamic Take Profits begin to appear — the trader scales out partial positions at TP1, TP2, etc.
If a Bearish Retest or red ▼ signal appears during the uptrend, it may act as a warning to tighten stops or exit.
Conversely, in a downtrend, the trader waits for a red ▼ signal at a Smart Band rejection or after trend breakdown to enter short, and uses yellow TPs to secure profits along the way.
How to Combine with Other Features:
With Smart Bands: Only take signals when the band color confirms the direction (green band for long ▲, red band for short ▼).
With Auto Optimization: Set and forget — the signals adjust to the asset behavior automatically.
With Take Profits: Let TP levels guide scaling out of the trade and reduce emotional exits.
Smart Bands – Usage Example
A trader wants to filter out sideways markets and only trade strong trends.
They enable Smart Bands to visualize trend strength.
When bands widen and become more vibrant, the trader looks for confirmation to enter a trend-following trade.
In a narrowing band zone (flat and pale), the trader avoids trading to prevent getting chopped out in consolidation.
Bullish and Bearish Retest Signals – Usage Example A trader missed the initial breakout and wants a safe re-entry into the trend.
A Bullish Retest signal appears when price pulls back into the lower part of a green Smart Band and then bounces — the trader takes a long position with a stop just below the band.
A Bearish Retest signal appears after a breakdown, when price retests the red Smart Band and rejects — the trader enters short with a stop just above the band.
These signals are often used in combination with structure zones or Fibonacci retracements.
Auto Optimization – Usage Example
A trader is unsure what sensitivity setting to use on a new asset like ADA/USDT 1h.
They enable Auto Optimization and let it analyze the past 2000 bars.
The system automatically selects the best signal configuration to match recent market behavior.
The trader uses this optimized setup for better entry signals without needing to manually backtest or tweak settings.
CUSTOMIZATION
This section gives traders full control over how trend signals behave, appear, and adapt to different market conditions.
Last updated