Adaptive Wave Interference Indicator with Bollinger Band Strategy

// This Pine Script™ code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © angrysky

//@version=5
indicator("Adaptive Wave Interference Indicator with Bollinger Band Strategy", overlay=true)

// User-defined inputs for moving averages
shortMaLength = input.int(5, "Short-Term MA Length")
midMaLength = input.int(13, "Mid-Term MA Length")
longMaLength = input.int(21, "Long-Term MA Length")

// User-defined inputs for MACD settings
macdFastLength = input.int(12, "MACD Fast Length")
macdSlowLength = input.int(26, "MACD Slow Length")
macdSignalSmoothing = input.int(9, "MACD Signal Smoothing")

// User-defined input for RSI
rsiLength = input.int(7, "RSI Length")
rsiOverbought = input.int(70, "RSI Overbought Threshold")
rsiOversold = input.int(30, "RSI Oversold Threshold")

// User-defined inputs for volatility threshold
volatilityLength = input.int(21, "Volatility Length")
volThresholdMultiplier = input.float(0.6, title="Volatility Threshold Multiplier", minval=0.1, step=0.1)  // Allows smaller increments

// User-defined input for close signal distance
closeSignalOffset = input.int(1, title="Close Signal Offset")  // Controls how far above/below the bar the close signal appears

// Bollinger Bands settings
bbLength = input.int(21, title="Bollinger Band Length")
bbMultiplier = input.float(2, title="Bollinger Band Multiplier")

// Bollinger Band Calculation
basis = ta.sma(close, bbLength)
dev = ta.stdev(close, bbLength)
upperBB = basis + bbMultiplier * dev
lowerBB = basis - bbMultiplier * dev

// Bollinger Band Buy/Sell Logic
bbBuy = ta.crossover(close, lowerBB)  // Buy when price crosses above the lower BB
bbSell = ta.crossunder(close, upperBB)  // Sell when price crosses below the upper BB

// Moving averages for wave structure
shortWave = ta.wma(close, shortMaLength)  // Short-term wave
midWave = ta.wma(close, midMaLength)      // Mid-term wave
longWave = ta.wma(close, longMaLength)    // Long-term wave

// Constructive/Destructive Interference Logic
waveInterference = (shortWave - midWave) + (midWave - longWave)  // Summing wave interference

// Volatility as Energy (Fluid Dynamics)
volatility = ta.stdev(close, volatilityLength)  // Volatility measured as standard deviation of price
volThreshold = ta.sma(volatility, volatilityLength) * volThresholdMultiplier  // Volatility threshold
highVol = volatility > volThreshold  // When volatility spikes above its mean

// Momentum Indicators for Phase Shifts
rsiValue = ta.rsi(close, rsiLength)

// Corrected MACD extraction with user inputs
[macdLine, signalLine, _] = ta.macd(close, macdFastLength, macdSlowLength, macdSignalSmoothing)

// Detect phase shifts based on MACD crossover and crossunder
momentumPhaseShiftUp = ta.crossover(macdLine, signalLine)   // Crossover for buy
momentumPhaseShiftDown = ta.crossunder(macdLine, signalLine) // Crossunder for sell

// Buy and Sell Signals based on Interference Patterns, MACD Momentum, and Volatility
buySignal = ta.crossover(shortWave, midWave) and waveInterference > 0 and highVol and rsiValue > rsiOversold and momentumPhaseShiftUp
sellSignal = ta.crossunder(shortWave, midWave) and waveInterference > 0 and highVol and rsiValue < rsiOverbought and momentumPhaseShiftDown

// Close Signals (Buy Above, Sell Below)
closeBuySignal = ta.crossunder(shortWave, midWave) and waveInterference < 0  // Condition for closing buy
closeSellSignal = ta.crossover(shortWave, midWave) and waveInterference < 0  // Condition for closing sell

// Plot Waves
plot(shortWave, color=color.green, title="Short-Term Wave")
plot(midWave, color=color.orange, title="Mid-Term Wave")
plot(longWave, color=color.red, title="Long-Term Wave")

// Plot Bollinger Bands
plot(upperBB, "Upper Bollinger Band", color=color.blue)
plot(lowerBB, "Lower Bollinger Band", color=color.blue)

// Plot Buy/Sell Signals 
plotshape(series=buySignal, title="Buy Signal", location=location.belowbar, color=color.green, style=shape.flag, size=size.small)
plotshape(series=sellSignal, title="Sell Signal", location=location.abovebar, color=color.red, style=shape.flag, size=size.small)

// Plot Close Signals Above and Below the Bars with Offset
plotshape(series=closeBuySignal, title="Close Buy Signal", location=location.abovebar, color=color.yellow, style=shape.triangledown, offset=-closeSignalOffset, size=size.tiny)
plotshape(series=closeSellSignal, title="Close Sell Signal", location=location.belowbar, color=color.yellow, style=shape.triangleup, offset=closeSignalOffset, size=size.tiny)

// Plot Bollinger Buy/Sell Signals (BBS and BBB)
plotshape(series=bbBuy, title="Bollinger Buy", location=location.belowbar, color=color.green, style=shape.circle, size=size.tiny, text="BBB")
plotshape(series=bbSell, title="Bollinger Sell", location=location.abovebar, color=color.red, style=shape.circle, size=size.tiny, text="BBS")