This script designed to identify up, down, and sideways trends. 200 , 9 , PSAR, and ATR are used to identify the strength of any instrument.
Candle Colors - Simpler approach to follow:
- Green color indicates for up side trade signals
Red color indicates for down side trade signals
Yellow color can be interpreted for stop, sideways, and counter trade trade signals
Multiple Trade Setups:
Green Zone - Trading green candles within green zone has better odds of long trades
Red Zone - Trading red candles within red zone has better odds of short trades
200 - Candles above 200 mostly for long trades. Candles below 200 usually for short trades. But the zone also very important to consider
9 - Cross over above 200 in Green zone, look for long trades. Cross over below 200 in red zone, look for short trades
PSAR - This can be used as potential initial warning sign. Also can be used to exit partial or wait for it goes to opposite side for taking trade decisions
Candle Above all - If Green candle and above all the indicators, then very good sign of long side. If red candle and below all indicators, then very good sign of short side.
Multiple Time Frame:
This works very well with any instrument and on any time frame. Always its better to do analysis on before entry, exit, and trade execution. Back test it with this setup and also observe it on live market. That will give edge in taking trade decisions. All the best and happy trading.
This script and setup is written with the sole purpose of identifying the strength of any instrument. Interpretation, trade decisions, and changing inputs are up to each individual users/trades.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.