Candle Coloring
Last updated
Last updated
Volume-based candle coloring mode changes the color of each candlestick according to the trading volume associated with that period. This method helps traders quickly identify periods of high or low market activity and understand the strength behind price movements.
High Volume: Candles are colored differently (red bearish, bright blue for bullish) when the trading volume is significantly higher than the average. This indicates strong buying or selling interest. This mode is useful for identifying potential breakouts or fakeouts. For example, a price breakout accompanied by high volume suggests a strong move, while a breakout on low volume might indicate a lack of conviction, potentially leading to a false breakout.
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 and neutral periods.
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.
This mode is beneficial for trend-following strategies, allowing traders to quickly assess the overall market direction and align their trades with the prevailing trend.
In this momentum-based candle coloring mode, candlesticks are colored yellow for strong bullish momentum and pink for strong bearish momentum. This visual approach highlights the intensity of market movements, helping traders quickly identify prevailing momentum and potential trend shifts.
Strong Bullish Momentum (Yellow Candles): Candles turn yellow when the market exhibits strong upward momentum. This might be triggered by a proprietary technique that detects when buying pressure is significantly driving prices higher, indicating that the market is experiencing robust bullish activity. Yellow candles suggest that the price is likely to continue rising, and traders may look to capitalize on this momentum. Strong Bearish Momentum (Pink Candles): Candles turn pink when strong downward momentum is detected. The same technique identifies when selling pressure is dominant, pushing prices lower at a significant pace. Pink candles indicate that bearish forces are strong, with the price likely to keep declining, making it a potential opportunity for short-selling or exiting long positions.