Cipher Wave PROUser guide
Last updated: 3 October 2026
What every line, diamond and label of Cipher Wave PRO and Cipher Wave Levels means, in their default look. Everything can be switched on or off and recoloured in the settings. Chart-reading tools only: nothing here is a buy or sell recommendation.
Cipher Wave PRO
Draws in its own pane below the price chart (the oscillator), and adds a few marks on the price chart itself.
The oscillator pane
| What you see | What it means |
|---|---|
| Blue waves (main area) | WaveTrend oscillator (formula by LazyBear): how far price is from its own short-term average, scaled to about −100 … +100. Above 0 = price stretched up, below 0 = stretched down. |
| Light blue edge on the front of a wave | Wave 1 (fast line) is ahead of wave 2: momentum is turning first. |
| Dark blue edge on the back of a wave | Wave 2 (slow line) is still beyond wave 1: the move is fading. Where the two waves overlap you see the main blue. |
| Teal area above 0 / purple area below 0 | Money flow: over the last 60 candles, do candles mostly close in their own direction (strong bodies up = teal, down = purple)? Smoothed, drawn faint so it never covers the waves. Height is for display only (taller on intraday charts); the sign and the zero crossings are what matters. |
| Yellow line | VWAP wave = wave 1 − wave 2, the momentum of the waves. It crosses 0 when the two waves cross. |
| Dotted grey line at 0 | Zero line. |
| Red lines at +53 (dotted) / +60 (solid) | Overbought zone. |
| Green lines at −53 (dotted) / −60 (solid) | Oversold zone. |
| Green / red dot on the wave | Trend flip: the trend trail on the price chart (see below) turned bullish (green) or bearish (red) on this closed candle. |
Off by default (turn on in the settings): RSI (14) line (white), Stoch RSI, small green / red cross dots in the overbought / oversold zones, classic big-divergence dots.
Divergences (oscillator pane + price chart)
A divergence = price makes a new high (low) but the oscillator makes a lower high (higher low): the move is losing strength. Checked on the waves and, in the background, also on RSI (14).
| What you see | What it means |
|---|---|
| Purple ◆ above the candle and at the top of the pane | Bearish divergence at this high. |
| Gold ◆ below the candle and at the bottom of the pane | Bullish divergence at this low. |
| Bigger diamond + number (2, 3, …) | Several divergences in a row on the same move (each new high / low weaker than the one before). The number is how many. More in a row = a more exhausted move, not a certainty. |
| Line from peak to peak in the pane | Connects the two oscillator swings being compared (thicker on the waves; thin on the RSI line, only when the RSI line is switched on). |
| "M" next to the diamond + thin dashed line | Major divergence: price went beyond every swing of the last 60 candles while the oscillator stayed below its strongest swing of that window (the classic "momentum peak" divergence). |
| Hollow ◇ | Early (possible) divergence: shown at the close of the candle that makes the new high / low while the oscillator is still weaker. It moves with a new extreme, turns into a solid ◆ when the swing is confirmed (2 closed candles later), and disappears if it is not confirmed. Roughly 1 in 2–3 gets confirmed. |
| Grey ◆ | Price went past the diamond's high / low before the oscillator turned: the divergence got no reaction. |
How the comparison works: a new swing is compared with the most extreme swing of the last 60 candles, counted only from the last major opposite swing (the current structure). Confirmed diamonds never move or repaint; only the hollow early diamond can change or vanish.
On the price chart
| What you see | What it means |
|---|---|
| Green / pink trail line + fill | ATR trend trail (ATR 10 × 3, × 2.5 on the daily chart). Green below price = uptrend, pink above price = downtrend. A flip is also marked by the dot in the pane. |
| Grey lines | High and low of the current higher-timeframe range (default 4h). |
| "SFP long (S/L under)" green / "SFP short (S/L above)" pink | Swing failure: price swept the range low (high) and a candle closed back inside the range. The icon sits at the sweep extreme, which is the natural stop level. It disappears once price trades beyond that stop, so only active setups stay on the chart. |
| "FA long (S/L under)" blue / "FA short (S/L above)" orange + light lines | Failed auction one level up: the daily range (option weekly) was broken and price closed back inside on the 4h (option daily). Same stop logic: gone once the stop is taken. |
Off by default: coloured candles, trend labels, 200 MA, cycle windows (halving / cycle top / bear low time windows, editable dates), multi-timeframe dashboard, classic daily SFP / 4h trigger.
Alerts (TradingView → Create alert → Cipher Wave PRO)
- Bullish / Bearish divergence
- Range SFP long / short
- Trend flip LONG / SHORT
- "Any alert() function call": detailed messages with the numbers (divergence # in a row and wave / RSI, possible early divergence, SFP / FA with level and stop, dot at a major level)
Cipher Wave Levels
Draws context levels on the price chart as short lines on the right side with a label (clean chart). The colour shows the timeframe of the level:
daily = yellow, weekly = pink, monthly = purple, yearly = white, visible range = cyan. Blocks are green (bullish, below price) or red (bearish, above price).
| Label | What it means |
|---|---|
| D / W / M / Y open | Open price of the current day / week / month / year. |
| D high / D low, W high / W low | Prior day / prior week high and low (prior month / year optional). |
| 90d high / 90d low (dotted) | Highest high / lowest low of the last 90 days. |
| Naked D / W / M POC | Point of control (price with the most volume) of a past day / week / month that price has not traded back to since. Nearest 3 above and below. |
| Naked daily / weekly / monthly / yearly high / low | Past highs and lows that have never been traded through since they formed. |
| Daily / Weekly / Monthly / Yearly block | The last opposite candle before a strong move (a red candle followed by a close above its high within 3 candles = bullish block, line at its close; mirror for bearish). Stays until price trades back into it. |
| PD POC / PD VAH / PD VAL | Prior day volume profile: POC, value area high / low (70 % of the volume). |
| PW POC / PW VAH / PW VAL | The same for the prior week. |
| POC / VAH / VAL (cyan) | Volume profile of the visible part of the chart; recalculates when you zoom or scroll. |
| VWAP | Session (daily) volume-weighted average price. |
| "(touched)" after a name | Price reached this level today. The line then starts at the touching candle and the level disappears when the day ends. |
Settings worth knowing: number of levels per side, profile row count (200) and value-area %, an optional reference symbol (read the levels from another exchange's chart), classic full-history lines instead of the clean right-side look.
Install (both)
TradingView → Pine Editor → new indicator → select all → paste the whole file → Save → Add to chart. The free TradingView plan allows 2 indicators per chart, so both fit together.
Disclaimer
For chart reading only. Not financial advice: no signal, level or icon is a guarantee of profit. Trading leveraged products carries a high risk of loss.