vinpierke

Collar Color Indicator

vinpierke Pro+ Updated   
The collar color ribbon indicator uses 4 different colors to help you deciding what to do with your position.
It uses a combination of MACD , RSI , SMA5 and SMA20 indicators to predict possible changes stock movement.

Green color
The indicator displays green when the RSI > 50, the MACD > 0 and the SMA5 > SMA20
Green indicates an upward ( bullish ) trend
When your long position is protected by a PUT option, the first green signal (after a series of 'non' green signals) indicates you could sell your PUT option as the trend becomes bullish .
In case of a short position, you should be protected by a CALL option

Yellow color
The indicator displays yellow when 1 of 3 the 'green' conditions aren't met
Yellow indicates that an upwards ( bullish ) trend is weakening or that a downwards ( bearish ) trend is strongly transitioning towards an upward ( bullish ) trend
If going short then you should consider buying a CALL option to protect your position

Orange color
The indicator displays orange when 2 of the 3 'green' conditions aren't met
Orange indicates that an upwards bullish trend is strongly transitioning towards a downwards bearish trend or that a downwards ( bearish ) trend is weakening
If going long then this you should considering buying a PUT option to protect your position

Red color
The indicator displays red when none of the 'green' conditions are met
Red indicates an downwards ( bearish ) trend
When your short position is protected by a CALL option, the first red signal (after a series of 'non' red signals) indicates you could sell your CALL option as the trend becomes bearish .
In case of a long position, you should be protected by a PUT option
Release Notes: The Collar signal ribbon uses 4 different color signals to help you deciding what to do with your position.
It uses a combination of MACD , RSI , EMA5 and EMA20 indicators to predict possible changes stock movement.

Green signal
The indicator displays green when the RSI > 50, the MACD > 0 and the EMA5 > EMA20
Green indicates an upward ( bullish ) trend
If your long position is protected by a PUT option, the first green signal (after a series of 'non' green signals) indicates you could sell your PUT option as the trend becomes bullish .
In case of a short position, you should be protected by a CALL option

Yellow signal
The indicator displays yellow when 1 of 3 'green' conditions aren't met
Yellow indicates that an upwards (bullish) trend is weakening or that a downwards ( bearish ) trend is strongly transitioning towards an upward (bullish) trend
In case of a short position you should consider buying a CALL option to protect your short position

Orange signal
The indicator displays orange when 2 of 3 'green' conditions aren't met
Orange indicates that an upwards (bullish) trend is strongly transitioning towards a downwards (bearish) trend or that a downwards (bearish) trend is weakening
In case of a long position you should considering buying a PUT option to protect your long position

Red signal
The indicator displays red when none of the 'green' conditions are met
Red indicates a downwards (bearish) trend
If your short position is protected by a CALL option, the first red signal (after a series of 'non' red signals) indicates you could sell your CALL option as the trend becomes bearish .
In case of a long position, you should be protected by a PUT option
Open-source script

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.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?