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
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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