Candle Coloring
Last updated
Last updated
Trend + Volume-based candle coloring visually highlights the market's momentum by combining price direction and trading volume. Intense Green candles indicate bullish momentum with stronger buying pressure, while intense purple candles signify bearish momentum with increasing selling pressure. This method helps traders quickly identify trends and shifts in market sentiment based on price and volume dynamics.
The candle coloring algorithm evaluates both price direction and relative volume. 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 purple. This dual analysis ensures a more precise visualization of momentum and volume interplay, aiding in identifying potential trend reversals or continuations.
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 purple 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.
This feature visually represents market momentum using three distinct colors to signal potential trend strength and transitions. 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.
Strong Bullish Momentum (Green Candles): Candles turn Green 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. Green candles suggest that the price is likely to continue rising, and traders may look to capitalize on this momentum.
Strong Bearish Momentum (Purple Candles): Candles turn Purple when strong downward momentum is detected. The same technique identifies when selling pressure is dominant, pushing prices lower at a significant pace. Purple 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.
Weakening Momentum (Aqua Candles): Candles turn to Aqua when low momentum is detected. Serving as early signals for possible trend reversals or a shift into a range-bound market environment. This visualization aids in quickly identifying actionable trading opportunities.
