A Momentum Candles
- Indicatori
- Versione: 2.54
A. Momentum Candles:
- Colours every candle by momentum: bullish, neutral or bearish at a glance.
- Marks each break of structure and change of character right on the chart.
- Draws a line at the swing level that broke, so you can see where it happened.
- Skips small swings and breaks into an exhausted zone, if you want fewer marks.
- Fits the momentum period to your timeframe, or uses the period you choose.
- Alerts you with a pop-up and a journal line when a closed candle changes colour.
You know this moment
Price pushes through the last swing high. Is it a real move, or is it running out of steam?
You look down at the oscillator window, then back up at the candles, then across to where you think the swing was.
By the time you have put the pieces together, the candle has closed. Now you are judging from memory, and the next candle is already moving.
One place to look
The answer is to put both questions on the candles themselves. The colour tells you what momentum is doing. A mark and a line tell you where structure broke and in which direction. You read the chart once, in the place your eyes already are.
A. Momentum Candles
Momentum in the candle colour
Each candle takes the colour of its momentum, measured with the relative strength index. Above Bullish Above (52 by default) the candle is bullish, below Bearish Below (48) it is bearish, and in between it is neutral.
You choose the bullish and bearish colours. The neutral colour is mixed from the two, so the chart stays calm and consistent. You can also choose which price the momentum is measured on.
Structure breaks, marked where they happen
Swing highs and lows are found with Swing Strength bars on each side (3 by default, 2 to 10). When a candle closes beyond the last swing, that is a break. A break in the direction of the current structure is a break of structure. A break against it is a change of character.
Structure is checked once per bar, when a new candle opens. You can show the marks as directional arrows, large or small circles, heavy, outline or wide arrows, or stop signs, in five sizes. Place them on the broken level or clear of the candle, and pick a buy and a sell colour.
A line at the broken level
Each break can draw a line from the swing to the candle that broke it. Breaks of structure and changes of character have their own colours, and you can choose the line style. You see at once which level gave way.
Fewer, cleaner breaks
Min Swing Size ignores swings smaller than a multiple of the average candle range (3 by default, 0 marks every break). The Exhaustion Veto uses a stochastic zone: no buy break above overbought (80) and no sell break below oversold (20), over 14 bars.
By default the veto judges reversals only. You can set it to judge every break, or switch it off.
A period that fits your timeframe
On Auto, the momentum period follows the chart: 7 on one to five minutes, 10 on fifteen to thirty minutes, 14 on one hour, 21 on four hours to daily, and 28 on weekly and monthly. You can also pick any of these periods yourself.
Alerts on closed candles
Choose what to be told about: a candle turning bullish or bearish, any change of momentum side, or every colour change. Alerts fire only when a candle has closed, and never when you first attach the indicator.
Each alert can be a pop-up, a journal line, or both. You can also keep them in the journal only, or mute them.
Light on long history
Max Bars to Process limits the work to the most recent bars (3000 by default). Set it to 0 to colour the whole history.
How to start
- Attach A. Momentum Candles to any chart, on any symbol and timeframe.
- In the inputs, open Signal Marks and choose a Mark Style. Marks are hidden until you do.
- If you want alerts, open Alerts and set Alert On.
You get one chart that shows momentum and structure together, in the place you are already looking.
