Attempts to find higher highs and lower lows in the 5 minute window. When the light blue graph line peaks , you should investigate selling , when the light blue graph line dips you should investigate buying.
This is good for identifying oversold and over bought positions
how have you configured the candle colors? I am only getting red and blue candles on my chart?
MichaelWithersOne
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The indicator does shade the candle colors, but it uses slightly different thresholds to the main square edged indictator in aqua blue (the one in the panel below). The Candle colors show bars that near oversold / overbought. The yellow should indicate flat spots in market activity , the blue should show transitional activity, the green shows heavier buying activity and the red shows heavies selling activity.
What Currency pair / time frame are you suing Dheerajsood.
dheerajsood
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I was using the Eurusd 5 minutes. Do you have any other indicators as well? Thanks
MichaelWithersOne
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Scrolling back through the last 24 hours or so I can see quite a flat market in places on the EUR/USD. If you look further back in time - there are some good examples of where it read the market quite well 20/07/2016 6:55 UTC was a good long opportunity (look at the down pointing square edge blue line in the bottom panel), and the indicator points to a good close at 14:20 UTC on the same day when the market peaks and the blue line points upwards. There are some coloured bars inbetween those times showing some stronger and weaker market moments. Iam planning to make a configurable version of this indicator and refine it a bit further, and hopefully include other time periods beyond 5 minutes. Hopefully I will publish this in the next couple of weeks! Iam glad your finding it useful!
dheerajsood
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I was looking at this another way. When the green bars stop painting... it is usually followed by a yellow bar. That yellow bar could indicate the trend is now weakening and its time to go short. Then when the red bars stop painting ... it is usually followed by a yellow bar. Which could indicate the market reversing.
I dont understand coding so cannot but do let me know if the above idea is on the right track? Thanks
MichaelWithersOne
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I have just released my latest indicator for detecting market spikes.