OPEN-SOURCE SCRIPT
Wavelet Transformation - BASIC Suite
********************************************************************************
* TECHNICAL DOCUMENTATION: ULTIMATE WAVELET SUITE
* Indicator Name: Ultimate Wavelet Suite (db4, Sym, Coif, Morlet, Mex)
* Author: wojlucz
*
* 1. PROJECT OVERVIEW
* The Ultimate Wavelet Suite is a high-fidelity Digital Signal Processing (DSP)
* tool designed to solve the "Lag vs. Noise" dilemma. By utilizing Discrete
* Wavelet Transform (DWT) principles, it filters market noise while maintaining
* a significantly lower phase shift (lag) compared to SMA or EMA.
*
* 2. MATHEMATICAL FRAMEWORK
* This suite implements a Stationary Wavelet Transform (SWT) approach using
* the "à trous" algorithm.
* - CONVOLUTION ENGINE: Filters price using specific wavelet kernels.
* - MULTI-RESOLUTION ANALYSIS (MRA): Increases filter "stride" across levels A1-A4.
* - CDV BOUNDARY METHOD: Folds weights of future coefficients back onto the current
* bar to ensure NO-REPAINTING at the live edge.
*
* 3. WAVELET FAMILIES
* - Daubechies 4 (db4): Industry standard for denoising and trend stability.
* - Symlet 4: Near-symmetric version of db4, reducing phase distortion.
* - Coiflet 1: Engineered for maximum approximation accuracy.
* - Mexican Hat: Best for detecting cycle peaks, troughs, and exhaustion.
* - Morlet: Harmonic-style wavelet, ideal for sideways/ranging markets.
*
* 4. CONFIGURATION GUIDE
* - Level A1/A2: Scalping, fast noise reduction.
* - Level A3/A4: Swing Trading, macro trend identification.
* TECHNICAL DOCUMENTATION: ULTIMATE WAVELET SUITE
* Indicator Name: Ultimate Wavelet Suite (db4, Sym, Coif, Morlet, Mex)
* Author: wojlucz
*
* 1. PROJECT OVERVIEW
* The Ultimate Wavelet Suite is a high-fidelity Digital Signal Processing (DSP)
* tool designed to solve the "Lag vs. Noise" dilemma. By utilizing Discrete
* Wavelet Transform (DWT) principles, it filters market noise while maintaining
* a significantly lower phase shift (lag) compared to SMA or EMA.
*
* 2. MATHEMATICAL FRAMEWORK
* This suite implements a Stationary Wavelet Transform (SWT) approach using
* the "à trous" algorithm.
* - CONVOLUTION ENGINE: Filters price using specific wavelet kernels.
* - MULTI-RESOLUTION ANALYSIS (MRA): Increases filter "stride" across levels A1-A4.
* - CDV BOUNDARY METHOD: Folds weights of future coefficients back onto the current
* bar to ensure NO-REPAINTING at the live edge.
*
* 3. WAVELET FAMILIES
* - Daubechies 4 (db4): Industry standard for denoising and trend stability.
* - Symlet 4: Near-symmetric version of db4, reducing phase distortion.
* - Coiflet 1: Engineered for maximum approximation accuracy.
* - Mexican Hat: Best for detecting cycle peaks, troughs, and exhaustion.
* - Morlet: Harmonic-style wavelet, ideal for sideways/ranging markets.
*
* 4. CONFIGURATION GUIDE
* - Level A1/A2: Scalping, fast noise reduction.
* - Level A3/A4: Swing Trading, macro trend identification.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.