How WaveTrend buy dots work
WaveTrendSignals uses the popular VuManChu / Market Cipher B style WaveTrend oscillator to detect buy dots, gold dots and bullish divergence.
Buy Dots
A green WaveTrend buy dot appears when WT1 crosses up WT2 from an oversold region. These are classic momentum-reversal signals.
Gold Dots
A gold dot is a rare deep-oversold + RSI capitulation signal. It requires WT2 ≤ -80, RSI < 20, and often a bullish divergence.
Divergence
A divergence appears when price makes a lower low, but WaveTrend makes a higher low. Divergences often precede trend reversals.