> For the complete documentation index, see [llms.txt](https://docs.bigbeluga.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bigbeluga.com/main-toolkits/market-waves-pro-tm/candle-coloring.md).

# Candle Coloring

## **Trend-Based**

Trend-based candle coloring mode changes the color of candlesticks depending on the current market trend, helping traders visually distinguish between bullish and bearish phases.

<figure><img src="/files/nbXd2PtNFuRj6POtzQOG" alt=""><figcaption><p>Trend</p></figcaption></figure>

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### How It Works

Bullish Trend: Candles are colored green when the price is in an uptrend.\
Bearish Trend: Candles are colored red when the price is in a downtrend.
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##

## **Momentum-Based**

This feature visually represents market momentum using three distinct colors to signal potential trend strength and transitions.&#x20;

Green indicates strong bullish momentum, purple reflects strong bearish momentum, and aqua highlights areas of low momentum, suggesting potential market shifts or periods of consolidation.

<figure><img src="/files/ipthXTphwGo9QB0cxZCa" alt=""><figcaption><p>Momentum</p></figcaption></figure>

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### How it works

#### Strong Bullish Momentum (Green Candles)

Candles turn green when strong buying pressure drives prices higher. This shows robust upward momentum, suggesting the price is likely to keep rising.

#### Strong Bearish Momentum (Red Candles)

Candles turn red when strong selling pressure pushes prices lower. This shows robust downward momentum, suggesting the price is likely to keep falling.

#### Weakening Momentum (Aqua Candles)

Candles turn aqua when momentum slows down. This serves as an early warning for a potential trend reversal or a sideways market.
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##

## Trend & **Volume**

Trend + Volume-based candle coloring visually highlights the market's momentum by combining price direction and trading volume.&#x20;

Intense Green candles indicate bullish momentum with stronger buying pressure, while intense purple candles signify bearish momentum with increasing selling pressure.&#x20;

<figure><img src="/files/OUx72fAFWEYzaz8ECXWJ" alt=""><figcaption><p>Trend + Volume</p></figcaption></figure>

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### How It Works

The candle coloring algorithm evaluates both price direction and relative volume.&#x20;

When buying activity dominates alongside upward price movement, candles are marked green. Conversely, when selling activity increases during a downward price movement, candles are colored red.&#x20;

This dual analysis ensures a more precise visualization of momentum and volume interplay, aiding in identifying potential trend reversals or continuations.
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##

## Momentum & Volume

The Momentum & Volume mode acts as a visual heatmap, identifying areas of high-intensity trading activity.&#x20;

Trend color intensity highlights volume strength, which often coincide with significant market turning points.

<figure><img src="/files/1Dt6xzSqwE1vWBG7XckC" alt=""><figcaption></figcaption></figure>

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### **How It Works**

The algorithm overlays volume intensity onto the current momentum direction. This creates a "Heatmap" effect that adapts based on the market environment:

High Intensity (Bright Red/Green): These represent Volume Spikes.

* In a Ranging Market: These intense colors often appear at the absolute peaks or troughs of price action. This indicates a "climax" where aggressive buying or selling has reached a limit, often leading to a reversal.
* In a Trending Market: High intensity signifies Strong Conviction. Unlike a single spike, a sequence of intense candles indicates a powerful expansion phase where "Smart Money" is driving the price. This suggests the trend has significant "fuel" and is likely to persist.
  {% endhint %}

Unlike standard trend coloring, the Momentum & Volume mode helps traders spot exhaustion and reversals:

* Top & Bottom Identification: High volume spikes (indicated by the brightest candle colors) frequently occur at the end of a move. On your chart, these are the areas where the brightest colors appear right before the price flips direction.

<figure><img src="/files/Z3UM5xfszoIeVzYTptUc" alt=""><figcaption></figcaption></figure>