Momentum Wave

The Momentum Wave is the heartbeat of the indicator. It uses Ehlers SuperSmoother technology and Exponential Smoothing to create a "Lag-Less" momentum line.

Calculation Logic

1. ESA Baseline: Calculates an Exponential Smoothed Average of the Typical Price.

2. Cycle Identification: Extracts the cyclical components of price movement.

3. SuperSmoothing: Applies a 2-pole Butterworth filter to eliminate aliasing and market noise without introducing significant lag.

4. Soft Limiting: Compresses extreme values (Hard-Capped at ±70) to keep the oscillator readable even during parabolic moves.

Interpretation

• Bullish Wave (Color 1): The wave is rising and above its signal line. Trend is positive.

• Bearish Wave (Color 2): The wave is falling and below its signal line. Trend is negative.

• Mid-Line (0): The equilibrium point. Crosses indicate a flip in trend direction.

• Intensity Heatmap: The background zones (OB/OS Boxes) change in transparency based on Volatility-Momentum Intensity, showing you where the wave is under the most pressure.