This script is native in momentum and is changing bar colors according to the trend it picks up. It works with an underrated way of interpreting oscillators. It uses a modified RSI and divides all possible values in zones that show if trend is bullish, bearish, if it shows weakness/strength etc.
all signals are explained below. Also it signals when a possible shift in trend is coming, this is also calculated from the zones of the modified RSI. Barcolors are described below.
It does not work with overbought and oversold signals as I believe this is not the way to use these momentum indicators and there is no edge in this. There is so much more value to be obtained from oscillators and thats what this indicator is doing. I will not be disclosing how you should use oscillators as I am not a trading educator. This indicator is based on the way I use oscillators. The information is out there to be found.
It works good on all time frames.
BARCOLORS:
Green: Bullish
Blue: Mega Bullish
Red: Bearish
Orange: Mega Bearish
Gray: A possible reversal is coming or it is chop. Gray candles can be anticipated as reversals with good confluence.
It also plots 'B', 'S', 'W';
B: Bull or Bear (gets clear from color green; bullish , red; bearish )
S: Strength is appearing in the market
W: Weakness is appearing in the market
It should give a good view on the strength and direction of the markets, also it should warn you when something is changing in the trends. Only 1 bar of lag is on these signals.
Also it can plot a dynamic ema . As trends turn really bullish or really bearish , the longer ema's won't hold as immediate support/resistance anymore. So the length of the ema can switch between short, mid and long. All lengths can be changed in settings. There is also a neutral ema which in my opinion holds the best with length 36. You will see gaps in the dynamic ema , that means all the ema's are cropped up and they dont really mean anything individually. A band can be plotted between neutral and dynamic ema to show a reliable support/resistance area on the chart. It works well on all timeframes.
In conclusion it's a mix of ema and momentum oscillator strategies that give good confluence for trade setups in all markets.
Any questions, don't hesitate to ask.
-Ares
all signals are explained below. Also it signals when a possible shift in trend is coming, this is also calculated from the zones of the modified RSI. Barcolors are described below.
It does not work with overbought and oversold signals as I believe this is not the way to use these momentum indicators and there is no edge in this. There is so much more value to be obtained from oscillators and thats what this indicator is doing. I will not be disclosing how you should use oscillators as I am not a trading educator. This indicator is based on the way I use oscillators. The information is out there to be found.
It works good on all time frames.
BARCOLORS:
Green: Bullish
Blue: Mega Bullish
Red: Bearish
Orange: Mega Bearish
Gray: A possible reversal is coming or it is chop. Gray candles can be anticipated as reversals with good confluence.
It also plots 'B', 'S', 'W';
B: Bull or Bear (gets clear from color green; bullish , red; bearish )
S: Strength is appearing in the market
W: Weakness is appearing in the market
It should give a good view on the strength and direction of the markets, also it should warn you when something is changing in the trends. Only 1 bar of lag is on these signals.
Also it can plot a dynamic ema . As trends turn really bullish or really bearish , the longer ema's won't hold as immediate support/resistance anymore. So the length of the ema can switch between short, mid and long. All lengths can be changed in settings. There is also a neutral ema which in my opinion holds the best with length 36. You will see gaps in the dynamic ema , that means all the ema's are cropped up and they dont really mean anything individually. A band can be plotted between neutral and dynamic ema to show a reliable support/resistance area on the chart. It works well on all timeframes.
In conclusion it's a mix of ema and momentum oscillator strategies that give good confluence for trade setups in all markets.
Any questions, don't hesitate to ask.
-Ares
Release Notes:
nicer bar colors
Release Notes:
bar colors changed to nicer colors and display chart changed