It provides buy-sell signals, trend direction indication, and identifies overbought and oversold zones. Visually, it comprises two value lines with a cloud/histogram in the center, which moves above and below a midline, representing rising or falling trends.

Key Features:

• Buy signals occur when the green line crosses the red line upwards; sell signals when the green line crosses downward.
• It shows trend direction with cloud waves above or below the midline.
• The indicator displays green (buy) and red (sell) dots on crossing points, with corresponding candle color changes (yellow for buy, turquoise for sell).
• Best used on 12-hour or 1-day intervals to avoid excessive short-term noise.
• The indicator can identify divergences between price and momentum (regular bullish and bearish divergence), signaling potential price reversals.
• It is advised to combine WaveTrend with other indicators like WMA, CMF, RSI, and MACD for more reliable trading decisions.

Overall, WaveTrend is a functional tool useful for identifying trend direction and trading signals but should be used alongside other analysis tools for confirmation.