So What Is The Wave Trend (WT) Oscillator?

The WT oscillator excels at following swings in a volatile market which is why this particular indicator is very useful when trading cryptocurrency.

Looking at the above chart you can see that I have circled each of the times the WT indicator has produced either a buy or sell signal as the two lines cross over and under each other. I have also marked with a horizontal line and a green (buy) or red (sell) arrow at exactly where the signal occurred on the chart.

The key to this indicator is in the ranges.

The strongest buy signals are given when the solid green line crosses over the red dotted line under the horizontal green line.

the horizontal green line. The strongest sell signal is given when the green line crosses under the red dotted line above the horizontal red line.

The horizontal lines on the top and bottom of the indicator are similar to the overbought and oversold thresholds on the Stochastic RSI indicator (one that you might already be familiar with). They show the areas at the strongest part of the trend, usually just before the reversal.

In summary the Wave Trend Oscillator is a very reliable indicator of mid and long term swings in price and a great tool for any cryptocurrency trader to add to their toolbox.

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