CUO with Blue Bull

Unlike conventional oscillators that focus on divergences for their primary signals, Core Ultra Oscillator (CUO) puts special emphasis on the Blue Bull signal, which is a specific type of higher low in the wavetrend.

This signal will revolutionise the way you trade going forward and has proven in our trading to be invaluable in ultra bullish assets and indexes such as Nasdaq and Bitcoin.

Ideal setup: 2 peaks in close succession with higher low on wavetrend.
In the above example, we have CVD thinning in red as trend. We have bullish confluence with bull div, amber CVD dot warning us that the trend is turning bullish along with green dot, and then a higher low Blue Bull with clear gaps between the peaks. There is also the number "1" shown alongside this optimum entry which represents a parabola sequence tracker built into CUO. It is our assertion that some of the best Blue Bull setups follow parabola style sequences in the wavetrend. More on this later, but for now it just needs to be stated that the "1" exists because it confirms that a parabola may be forming, and requires at least one prior blue bull in the sequence from which this current blue bull also needs to be a higher low.

This entry (blue arrow) in Jan 2023 was a perfect buy for the next 3 years of the bull market. Nasdaq has much more than doubled in value since.

This works on all timeframes, so even though that was a really good macro buy, the same methodology works for short term scalps on lower timeframes. We have also added the blue bull on the price chart for the sake of illustrating the precision of the entries (this will be available in our upcoming Powerfisher indicator). We are also displaying some basic moving averages freely available on Trading View (21 EMA/orange, dynamic 50EMA/green or red, 200 SMA/dark blue, 100SMA (red squiggly line) which work well with CUO as additional confluence.

Nvidia/4HR: Another perfect example:

The arrows show 2 peaks in close succession, where the CVD amber bull div marks the first peak, and the higher low blue bull marks the second. This second peak is what triggers the explosive move, taking Nvidia from 95 up to 184 in 4 months. Notice also how on this Uber move, the red dots and bear divs gave lots of false signals.
In the second part of this move on the right we get a parabola forming shown by the sequence tracker. The Blue Bull visualizes the "coiling" of momentum, allowing you to position before the major thrust move.

Gold/Daily:

Here are some great blue bull examples on Gold where each major leg up was prompted by a sequence of double blue bulls, starting from a double bottom with a blue bull on each bottom in the $1600s and gave multiple entries or adds to longs starting from $1600 and rising to $5,500+ with each double bull sequence showing renewed strength in the price. Each new series of double blue bulls was an obvious place to add as, in relation to each other in the sequence, they were forming higher highs. Our indicators recommended longing and adding at these blue bulls and moving stops up to the blue bulls below the most recent adds.

Nvidia/Daily:

Our daily blue bulls also caught the majority of the last 4 years Nvidia's price surge, giving early entries and multiple places to add. Our approach has always been to put the stops above the previous sequence of blue bulls, allowing you to lock in profits.

The Dual-Layer Classification System –CUO Core:
CUO is built on a foundational insight: conventional oscillators fail in trending markets because they rely solely on price. Price is lagging. Order flow is leading.

Layer 1: Momentum Layer (Filtered WaveTrend)
This layer identifies peaks, divergences, and momentum conditions. But unlike standard wavetrend oscillators, CUO filters aggressively—focusing on extreme instances and prioritizing shape and trajectory. Sharp peaks, parabolic sequences, and clear gaps to the zero line are weighted heavily. Globular, "pop and grind" clusters are ignored.

Layer 2: Order-Flow Filter Layer (Cumulative Volume Delta - CVD)
This is the qualifying core. Red CVD signals urgent selling dominance; green CVD signals urgent buying dominance. CVD provides independent divergences and thinning detection that act as a truth check on every wavetrend signal. If the momentum says buy but the order flow says sell, CUO waits.

This synthesis—momentum filtered through order-flow reality—creates a system that is faster, more reliable, and uniquely capable of thriving in both ranging and trending conditions.

Conventional Red Dots and Their Failure in Bullish Markets

The green dots in this example performed quite well. They caught some profitable long entries and aligned with the broader bullish trend.
The red dots, however, were not great short entries. They appeared repeatedly during the strongest bullish phases. In a conventional oscillator, these would have stopped you out prematurely or induced costly shorts.
Why did they fail?
Because in strong, sustained uptrends, price can remain overbought indefinitely. Conventional wavetrend, lacking an order-flow filter, treats every overbought crossunder as a sell signal. CUO does not.
This is why CUO qualifies every sell signal with CVD context. Our dark grey, purple, dark blue, and black dots are much more accurate for catching genuine tops because they use specific CVD thinning and trend reversal criteria—waiting for urgent buying to exhaust before signalling a reversal.
Here, our CVD Dark Blue Dot captures the first peak at extremes after the CVD trend has turned red, catching the local top in price action. Meanwhile, all the red dots and bearish divergences leading up to it failed.

Also observe how good the two blue bulls were in this example, both capturing thrust moves up. The first blue bull's peak shape is the ideal shape—it shows a sharp pullback (selling climax) followed by a sharp reversal (whales step in to buy). The second example, near the zero line, is also often fruitful, but can be trusted most when in a Blue Bull parabola sequence of higher lows.
The lesson is clear:
In strongly bullish markets, conventional red dots generate false signals. CUO replaces them with qualified, context-aware sell signals.


CUO Components:

Wavetrend: momentum oscillator that moves between values of +100(bull) and -100(bear) with zero being neutral and transition zone.
Zero line: above this line we go bullish, below we go bearish. Trend shift filters are also displayed on the zero line.
Blue bulls on or near zero line are often highly successful long entries
Trend shift filter: marks transition from one CVD (Cumulative Volume Delta) trend to another (red to Green or green to red). Only the strongest shifts in momentum between CVD trends is printed by the trend shift filters and can be tuned in input settings.
OB level: price is getting heated. This level represents the highest probability reversal level for ranging moves.
OS level: price may be oversold and lead to reversal. This level represents the highest probability reversal level for ranging moves.
Red CVD: urgent selling is dominating the market.
Green CVD: urgent buying is dominating the market.
Wavetrend peak: momentum has peaked and is now reversing
Bull div: price makes a lower low whilst wavetrend makes a higher low, a bullish sequence
Bear div: price makes a higher high whilst wavetrend makes a lower high, a bearish sequence

Summary of dot signals:
Conventional coloured dots (for ranging markets)
These are standard wavetrend oscillator signals, effective in non-trending conditions.

Buy signals:
Green dot: standard wavetrend buy signal (crossover in oversold territory).
Green divergence dot: standard wavetrend bullish divergence.

Sell signals:
Red dot: standard wavetrend sell signal (crossunder in overbought territory).
Red divergence dot: standard wavetrend bearish divergence.

Special coloured dots (for trending/volatile markets)
These signals use CVD and/or regular volume and/or MFI for more reliable trend-shift confirmations.

Buy signals:
Yellow dot (goldextreme buy): an extreme buy signal near market bottoms. Requires a wavetrend bullish divergence combined with the money flow index (MFI) thinning from red to green. Indicates a high-confidence entry.
Amber dot: Bullish CVD divergence (with regular volume blend). Signals potential price bottoms. Stronger when confirmed with a blue bull, yellow dot or wavetrend bullish divergence.
Blue bull dot: identifies a potential bullish pattern: a specific kind of higher low on the wavetrend oscillator signals accumulating bullish momentum and potential for explosive price surges.

Sell signals:
Purple dot: a wavetrend bearish divergence occurring while CVD is thinning from green to red, after a sustained CVD green trend. Signals a potential reversal in bullish markets.
Grey (dark grey) dot: Bearish CVD divergence (with regular volume blend) completely independent of wavetrend. Warns of potential price tops. Stronger when confirmed with a purple dot and/or wavetrend bearish divergence.
Dark blue dot: the first wavetrend extreme sell signal that appears after a confirmed, established CVD red trend. Indicates a high-probability reversal in bearish markets.

Secondary sell Signals:
Red Bear: Identifies bearish momentum sequences (similar to Blue Bull but for sells)
Black Dot with Yellow Center: Targets first sign of weakness after CVD trend turns red
• Note: Divergence signals that do not occur at extreme overbought/oversold levels appear in dimmer green or red shades—a visual cue that they lack the conviction of extreme-level divergences and should be weighted accordingly.

Blue Bull Parabola Examples: The Smallest Peaks, The Biggest Moves
Nasdaq 1min Chart:

The biggest thrust moves of all came off almost invisibly tiny peaks near the zero line. This is an innovation that other wavetrend oscillators miss entirely.

USDT 2 Day Chart:

We have drawn a blue curve line to show the higher low peak trajectory that led to the explosive move up on USDT. The first blue bull in the sequence never shows up in the parabola sequence. This parabola sequence officially starts tracking after at least one blue bull has already occurred, as you can see in the example above.

Also notice how in all the examples above where the Parabola "1" tag is shown, we also have a bullish CVD divergence (Amber dot) offering a secondary classification system independent of WT. This tells us that the selling pressure is weakening and a reversal may be imminent—as was indeed the case in all these examples.

Another Experience-Driven Addition: Black Dot with Yellow Center

Experience has taught us that sometimes it is the smallest peaks that lead to the biggest selloffs. Look at the two large arrowed examples. The peaks are tiny but the overall trend is ultra bearish and so we can enter a short position with more confidence.
We know this not only because the trend as shown by the red CVD has been generally thickening leading up to the peak, but also because the wavetrend peak prior was globular—characterised by a "pop and grind" type price movement, not strong purposeful direction.
This is another very important aspect to trading wavetrend oscillators: look for sharpness to the wave, not a jelly-like amorphous mess, for higher confidence entries.
The two smaller arrows are also successful in that they lead to selloffs but not to the degree of the ones with the larger arrows, and if we look at what came before these peaks, we see more bullish structure on the previous pullbacks below the zero line, with two shallow peaks with "v" like sharpness, which suggests that the bulls are starting to take control. So when looking to trade the black dot, the overall wavetrend context is very important, wait for the highest probability setups by looking at the overall context. For the black dot which targets the smallest peaks after the CVD trend has turned red, the more amorphous the shape of the WT below the zero line, and the thicker the red CVD leading up to the peak the better.

CVD Divergences: Independent, Uncorrelated, and Deadly Accurate
CVD Bull Div and Bear Div called all major peaks in last two BTC Bull runs:

The Amber dot timed the perfect buy opportunity for BTC, printing in the next 2-week candle after the FTX crash in November 2022. The red CVD was thinning as trend at the same time and would have given an entry of 16k.
The Grey dot caught both the macro peaks of the previous bull run and the two top peaks of the current bull run.
The Amber bull div dot and Grey bear div dot are not tied to the wavetrend. They can time some of the biggest reversals on any time frame:


Trend Shift Filters: Early Context, Better Entries

These often give you much needed context before entering a trade. We find that following these closely on the hourly chart for day trading gives us an edge.
It is still important, however, to look for confluence whilst preparing for any entry. Here we see that the best short was also when the red trend shift filter coincided with a bear div:

This is illustrated by the first example above as a bear div is also forming, although this also shows how great trend shift alerts would be in this situation as they front run the divergence signal by a few bars as they are real time and do not require fractal detection.
Similarly the last example on the right shows that the best green trend shift also coincided with a blue bull and amber dot so triple confluence.

Summary of CUO Key Concepts
1.Dual classification for higher confidence entries:
*Momentum layer (wavetrend oscillator): A heavily filtered version that identifies peaks, divergences, and conditions, focusing on extreme instances (e.g. green/red dots for buys/sells at climactic bottoms/tops) in overbought (OB) and oversold (OS) levels according to RSI extremes. It emphasizes shape and trajectory, prioritizing sharp peaks ideally with gaps to the zero line, and parabolic higher-low sequences over globular clusters to avoid "pop and grind" traps.
**Order flow filter layer (Cumulative Volume Delta - CVD): The core component, qualifying momentum signals to reduce false positives. Red CVD indicates urgent selling dominance; green signals urgent buying. It provides independent divergences and thinning detection for proactive warnings.

2. Targets Small Peaks in Context-Driven Environments:
Both our Blue Bull and Black Dot with Yellow Centre illustrate that sometimes the smallest peaks on WT lead to the biggest moves. We can target these peaks with more confidence in the wider context that CUO offers.

3. Trading Within Established Trends:
Signals like the Dark Blue Dot and Black Dot target the first signs of momentum weakness after a new bearish CVD trend is confirmed.

4. Original Momentum Structure Concepts:
The Blue Bull identifies accumulating bullish momentum during pullbacks via sequences of higher lows on WaveTrend. Its bearish counterpart, Red Bear, detects building selling pressure through sequences of lower highs.

5. Actionable Alerts & Minimal Lag:
A comprehensive alert system that uses a blend of real-time and fractal-based notifications ensuring timely reactions to order flow changes

6. Enhanced, Noise-Filtered WaveTrend:
Cuts clutter by highlighting only climactic exhaustion points. Even when standard divergence dots appear outside these extremes, they are visually dimmed—a subtle but intentional cue to manage expectations and encourage additional confluence.

7. Independent CVD Dots:
Fire separately from WaveTrend, based purely on order-flow divergences and thinning. These offer a secondary classification system.

8. CVD as Core Trend Detection:
Volume-driven momentum replaces traditional oscillator signals

9. Shape & Trajectory Emphasis:
Focuses on structural patterns like parabolic sequences and gaps between peaks to the zero line for scalable, high-probability trades.

High-Probability Divergence & Opportunity Dots (WaveTrend + CVD/MFI/Range Position)
Purple Dot: Bearish WaveTrend divergence confirmed by CVD thinning (green to red).

Gold Extreme Buy Dot: Tied to WaveTrend extremes, combining a deep oversold bullish divergence with a confirming turn in Range Position.

Blue Bull Dot & Parabola: Core bullish concept detecting higher lows on WaveTrend.

CVD-Based Divergence Dots
Amber Dot: Bullish CVD divergence (price lower low, CVD higher low).
Dark Grey Dot: Bearish CVD divergence (price higher high, CVD lower high).

Real-Time Alerts
CVD Green Trend Shift Filter: On the zero line, signals a confirmed shift to bullish CVD.
CVD Red Trend Shift Filter: On the zero line, signals a confirmed shift to bearish CVD.
Dark Blue Dot & Black Dot (Yellow Center): Fast alerts targeting first weakness after a confirmed bearish CVD shift.

How to Use This Indicator: A Practical Workflow
Step 1: Always begin with a CORE System Check
(hourly timeframe recommended for beginners as the wavetrend peaks on this timeframe coincide well with trading sessions: Asia/UK/NY
Identify Trend:
When identifying trends we do so not only with CVD (e.g. if I want to buy, is CVD red but thinning towards green to support my bull thesis?), but also with the trajectory of the peaks in wavetrend.

Step 2: Confluence Hunting
Dual Classification: Leverage independent CVD dots (Amber for bullish, Dark Grey for bearish) as leading indicators.
Entry Triggers: Combine with WaveTrend-based dots (e.g., Gold/Blue Bull for longs, Purple/Dark Blue for shorts) and WT shape validation (sharp peaks/parabola preferable over globular jelly like structures that do not return to the zero line for extended periods).
Use real-time trend shift filters for extra confluence

Long Example: Red CVD thinning + bullish divergence + Amber dot + higher-low Blue Bull with gaps + Green shift = multi-layer setup.
Short Example: Green CVD thinning + bearish divergence + Purple/Grey dot + lower-high Red Bear structure = multi-layer setup.

Step 3: Optimal Alignment
In ranging markets: Focus on signals near OB/OS levels and employ classic green/red dots and divergence signals along with your own support/resistance levels.
When using these conventional divergences, note that only those occurring at extreme levels appear in full opacity; non‑extreme signals are intentionally dimmed to indicate lower conviction.

In trending markets: Focus on extreme and CVD dots but always look for confluence and use your own support/resistance levels.
Profitable trading is all about scalable setups that draw confluence from various input sources. One key confluence area will be your own levels on the chart. Always aim to incorporate your own support and resistance levels and then wait for our signals to give confirmation at those levels.

Long Example:

In this example we see two green dots that fail as the red CVD is still thickening. By staying with the CVD trend, we do not follow the green buy dots yet.
Then the Amber dot appears, showing bullish pressure building. Meanwhile, a clear red thinning trend is emerging in the CVD.
This is followed by Blue Bull and Green Trend Shift dot appearing on the same bar, and finally CVD turning green as trend. This leads to a strong move up, which then starts to flag with the first red dot and then sells off further on the Purple dot.

Great Example of the CUO Suite as a Whole on SPX/Weekly:

Conclusion: A Unified Trading Suite
The Core Ultra Oscillator is more than an indicator; it is a complete, experience-driven trading framework. From the revolutionary Blue Bull signal to the independent clarity of CVD divergences, every component is designed to work in synergy—filtering noise, providing a dual confirmation framework, and revealing high-probability setups invisible to conventional tools.