Blockcircle Waveform Bands

The Blockcircle Waveform Bands is a comprehensive trend-following indicator built around a layered moving average ribbon system. The core idea is simple: when shorter-term averages stack above longer-term ones in proper sequence, the trend is healthy. When they compress, cross, or invert, something is changing.

This indicator was developed to solve a common problem. Traders often clutter their charts with multiple moving averages, each added separately, each requiring manual tweaking. Waveform Bands consolidates everything into a single, unified view.

You get fast, medium, and slow bands that expand and contract with momentum, change color based on trend direction, and provide clear reference points for entries, exits, and trend assessment.

Also included is a configurable higher-timeframe bias band, which allows you to track the macro trend without switching timeframes. Most useful is following the 21W EMA and 20W SMA crosses.

What Makes This Indicator Different

While moving average ribbons are a well-known concept, this indicator extends beyond simple MA plotting in several meaningful ways that justify its protected source status.

1. First, the indicator calculates a proprietary confluence score ranging from negative 100 to positive 100. This score is not just counting crossovers. It uses weighted contributions from band alignment, price position across multiple timeframe zones, and momentum confirmation via rate of change integration. The specific weighting logic and calculation method represent original development work not available in standard MA ribbon indicators.
   
2. Second, the summary scoring system evaluates trend quality on a 0 to 100 scale using a multi-factor algorithm. Trend state contributes up to 35 points, band alignment contributes up to 30 points, price position contributes up to 20 points, and momentum confirmation contributes up to 15 points. This weighted approach provides objective trend measurement rather than relying solely on visual interpretation.
   
3. Third, the signal generation framework offers five distinct signal methods, each with three sensitivity levels, creating fifteen unique configurations. This is a complete signal system with filtering logic, not simply MA crossover alerts. The interaction between signal type, sensitivity, and the optional trend filter creates a flexible framework that traders can calibrate to their specific style.
   
4. Fourth, the optional smoothing layer applies additional processing after the base MA calculations are complete. This reduces noise and whipsaws during choppy conditions while maintaining responsiveness during genuine trend moves.
   
5. These proprietary elements, particularly the scoring algorithms and signal framework, represent the original work that distinguishes this from standard open-source MA ribbons available elsewhere.
   

Key Features

• Multi-Band Ribbon System: Three distinct bands covering short, medium, and long-term trend structure. The fast band uses configurable MAs with default periods of 8, 13, and 16 for immediate price action. The mid band spans 21 to 42 periods, capturing the intermediate swing structure. The slow band covers 50 to 60 periods, representing the underlying trend foundation. Each band can be independently toggled, colored, and adjusted.
  
• Flexible Moving Average Types: Choose from eight MA calculation methods including EMA, SMA, WMA, VWMA, HMA, DEMA, TEMA, and ZLEMA. Set a default type for all bands or override individually per band. Useful for those who prefer Hull MA smoothness or the responsiveness of DEMA and TEMA.
  
• Major Moving Averages: Built-in 200-period MA for institutional-level support and resistance. Pi cycle MA using 314 periods for longer-term cycle analysis. Fully customizable additional MA with adjustable length, type, and color. Clear visual distinction with configurable line widths.
  
• Higher Timeframe Bias Band: Dual MA system pulled from any higher timeframe you choose. Default configuration mirrors the popular 21-week EMA versus 20-week SMA setup. Both MAs are fully adjustable in length, type, and timeframe. Automatic bullish or bearish fill coloring based on which MA leads. Keeps macro context visible without leaving your current chart.
  
• Dynamic Trend Coloring: All bands automatically shift color based on detected trend state. Bullish alignment shows green spectrum, bearish shows red, neutral shows yellow.
  
• Trend Detection and Scoring: Algorithmic trend state detection based on band alignment and price position. Confluence scoring system weighing multiple factors from negative 100 to positive 100. Band alignment tracking showing whether each band is internally bullish or bearish. Band expansion and contraction monitoring for momentum assessment. Strength percentage calculation for trend conviction measurement.
  
• Signal Generation: Multiple signal type options including band crosses, price crosses, and full alignment signals. Three sensitivity levels to match different trading styles and timeframes. Optional filtering to show only signals confirmed by the slow band.
  
• Dashboard Display: Comprehensive table with summary score, bias direction, and trend status. Compact mode available for reduced screen footprint.
  
• Alerts: Pre-configured alerts for buy and sell signals. Trend change notifications when bias shifts bullish or bearish. Major MA cross alerts for the 200 MA and Pi MA. Band alignment alerts when all bands synchronize. Confluence threshold alerts for strong directional readings.
  

How To Use

1. Identifying Trend Direction: Look at the overall band structure first. In a healthy uptrend, the fast band sits above the mid band, which sits above the slow band. Price should be trading above the fast band or at least within it.
   
2. The dynamic coloring gives you an instant read. If everything is green, the trend structure is bullish. Red means bearish. Yellow or mixed colors indicate transition or consolidation.
   
3. Check the dashboard summary row for a quick score. Above 60 suggests a solid trend, while below 40 indicates weakness or chop.
   
4. Using the Bias Band for Macro Context: The higher timeframe bias band tells you whether the larger trend supports your trade idea. If you are looking to buy on a daily chart, check whether the weekly bias band is bullish, meaning the fast MA is above the slow MA.
   
5. When the price is above both bias MAs and the band is bullish, conditions favor long positions. When the price is below both and the band is bearish, conditions favor shorts or staying out.
   
6. The fill color between the bias MAs changes automatically. Green fill indicates bullish macro bias and red indicates bearish. This is visible at a glance without checking numbers.
   
7. Finding Entry Points: Look for pullbacks into the mid band during established trends. When the fast band compresses toward the mid band and then expands again, this often marks a continuation entry.
   
8. Band crossings can signal new trend initiations. When the fast band crosses above the mid band with confirming price action, it suggests a potential long entry. The opposite applies for shorts.
   
9. Use the signal markers as alerts to potential opportunities, but confirm with price action. A signal appearing while the price is holding above a key band carries more weight than one appearing in isolation.
   
10. Managing Risk and Exits: The slow band often acts as a trailing stop reference during trends. As long as price holds above the slow band on pullbacks, the trend remains intact. This is not always true, but it serves as a helpful general guideline.
    
11. Losing the mid band on a closing basis often warns that the move is weakening. This might prompt partial profit-taking or tightening stops.
    
12. The 200 MA serves as a major support or resistance level. Trends that break below the 200 after an extended move often accelerate to the downside.
    
13. Reading Momentum Through Band Width: When all bands are tightly compressed, expect a directional move soon. Compression represents energy building up.
    
14. Expanding bands confirm momentum is present in the current move. Watch for continued expansion on trend days.
    
15. Contracting bands during a trend may warn that momentum is fading, even if the price has not reversed yet.
    
16. Combining Multiple Timeframes: Enable multi-timeframe mode to see higher timeframe MAs plotted on your current chart. Be careful with this as it can crowd the display, but it is useful for seeing different timeframes stacked together.
    
17. This helps identify where significant support or resistance exists above your normal view.
    
18. The bias band already provides macro context, but you can set it to different timeframes for different purposes. Day traders might use daily bias bands while swing traders might prefer weekly.
    

How To Read The Table

• The summary row gives you the overall picture. A high score with bullish bias and strong trend status represents ideal conditions for trend-following entries.
  
• Individual band status rows tell you if any divergence exists between timeframes. If the fast band is bearish but mid and slow are bullish, you might be seeing a pullback rather than a reversal.
  
• Price position percentages show how extended the price is from each band. Extreme readings in either direction suggest potential mean reversion or exhaustion.
  
• Limitations
  
• This indicator is designed for trending markets and performs best when clear directional movement exists. During extended consolidation or ranging conditions, the confluence score may oscillate near zero and signals may produce mixed results.
  
• Like all moving average based systems, signals are lagging by nature. The indicator confirms trends rather than predicting them. Early entries require additional confirmation from price action or other methods.
  

The default settings are optimized for daily and higher timeframes on crypto and forex markets. Intraday traders and those analyzing other asset classes may need to adjust the band lengths to match their specific conditions.

This indicator should be used as part of a complete trading approach that includes proper risk management and position sizing. It is not intended as a standalone system.

Getting Started

1. Start with the default settings and observe how the indicator behaves on your preferred instruments and timeframes before customizing.
   
2. The indicator works on all markets and timeframes, but the default MA lengths are optimized for daily and higher charts. For intraday trading, consider reducing the band lengths proportionally.
   
3. Use the compact table mode if the full dashboard feels cluttered. The essential information remains visible while using less screen space.
   
4. Set up alerts for trend changes and major MA crosses so you do not need to watch charts constantly. Let the indicator notify you when conditions change.