The indicator looks for short-term trends based on the readings of the MACD, RSI and ATR indicators. All calculations are visualized with the colors of the candles that overlap on the chart.
The indicator uses gray, green, and red colors to draw individual candlesticks.
They point to a flat. They are used for trading on breakouts. Build the upper and lower limits of the range and trade for a break in the direction of the current trend.
To find a longer-term trend, I recommend using the EMA 150 and 200 on the H4 charts. A value above 2 EMA is considered an uptrend, and a value below it is considered a downtrend.
- Indicate an uptrend
- Green candlesticks with a green dot below the candle low indicate a strong uptrend
The point under the green candle can be used as a visual hint to move the stop loss to this level and take some profit. The distance to the point from the candle minimum is calculated using the ATR parameters.
- Indicate a downtrend
- Red candlesticks with a red dot above the candle high indicate a strong downtrend
The dot above the red candle can be used as a visual cue to move the stop loss to this level and lock in some profit. The distance to the point from the maximum of the candle is calculated using the ATR parameters.
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- ATR period – ATR period
- ATR multiple-ATR multiplier
- MACD fast EMA setting-setting the fast EMA of the MACD indicator
- MACD slow EMA setting-setting the slow EMA of the MACD indicator
- MACD signal period setting-setting the signal period of the MACD
- MACD applied price – the type of the MACD price
- RSI period – the RSI period
- RSI applied price – the price type of the RSI
The ATR parameters are used to calculate the recommended stop loss level for trailing stops in a strong trend.
The MACD and RSI parameters are used to calculate the current microtrend and the strength of the movement.