Setup Tabajara was created by a Brazilian trader known as "The OGRO of Wall Street" .
The idea of this setup is to indicate to the trader the current trend of prices and the type of operation should be looked for in the graph.
- It does this through the relation of the closing price position and the of 20 periods, by painting the candles in 4 possible colors :
- Green -> Price rising in upward trend (Search entry points for PURCHASE)
- Black -> Price correcting in Bullish Trend (Search entry points for purchase)
- Red -> Price falling in Downtrend (Search entry points for Sale)
- White -> Price correcting in Downtrend (Search entry points of Sale)
- In addition, I also put the following indicators in the script:
- Exponential Average of 8 periods: To identify short-term price movements
- Arithmetic Average of 50 periods: To identify medium-term price movements
- Exponential Average of 80 periods: To identify medium-term price movements
- Arithmetic Average of 200 periods: To identify long-term price movements
If you still have questions, please contact me by direct message: https://www.mql5.com/en/users/robsjunqueira/