Its color bar flashes several signals:
If one timeframe is in a buy mode and the other in a sell mode, the signal is "No Trade Allowed", a red bar.
If both are neutral, then any trades are allowed, showing a blue bar.
When one is while the other is either or neutral, there is a green bar, allowing traders to buy and prohibiting shorting.
When one is while the other is either or neutral, a red bar signals that shorts are permitted, while long trades are not allowed.
Please check Dr Elders books available on amazon they are a great buy and a nice to read.
If the color is red there is no long trade, if the color is green there is no short trade (even tho in the crypto world you cant really open short position unless in some pairs who allow margin trading), and if is blue you can go both ways, so the scenarios are 3.
I purchased his elder-disk (v3.2) for MT5 over a year ago and use his system. (Side note: They are no longer updating or providing support for the MetaTrader Versions)
There are 3 options Dr Elder has I’m hoping you might consider changing /adding to your script?
1. He uses “Black” for the “No Trades Allowed” color (User definable). So there are actually four possible colors (See copy from his manual below)
2. Have the “TimeRatio” value so it can be changed/input by the user. (The Elder system is User Definable - explanation from his manual below)
3. Along with the MACD input values you already have, he uses a Short_EMA_Length (13) The short-term price EMA. Also User Definable. Maybe this is already in your code? (this is also used with his Impulse System)
I have pasted below a portion from the user manual for the Impulse Release incase it helps:
Parameters are the MACD ones plus a time ratio.
● MACD_Short_Length (12) – The short EMA for the MACD calculation.
● MACD_Long_Length (26) – The line EMA for the MACD calculation.
● MACD_Smoothing_Length (9) – The smoothing value for the MACD Signal line.
● Short_EMA_Length (13) – The short-term price EMA.
● TimeRatio (5) – The ratio between the two timeframes. For a system using daily for the short and weekly for the long use 5. If you are trading 10-minute bars and using hourly charts as long-term, use 6, etc.
Format Tips: There are 4 plots – each is either 0 or 1, and only one shows at any given time. Choose medium size histogram style, color-coding its bars as appropriate: green for “No Short allowed”, red for “No Long allowed”, blue for “Both allowed” and black for “None allowed”.
regarding the ema 13 or 12...do you really think it makes a difference?but it can be done
the time ratio adjustable is the easiest request i will be updating as soon as possible
Where the black bar comes in is, If one timeframe is in a buy mode and the other in a sell mode, the signal is "No Trade Allowed", a Black Bar (You currently show a Red Bar indicating a Short/Sell)
For example, When I look at both MetaTrader (elders chart) and Tradingview (your chart), sometimes I will get a black bar on MetaTrader showing "No Trades Allowed"; Black.
While yours will show a Red Bar instead indicating a "Time to sell or go short" which may not be true at all. (A Red Bar is when one is bearish while the other is either bearish or neutral). Hope this helps..
In summary...on the line from your description: "If one timeframe is in a Buy mode And the other in a Sell mode, the signal is "No Trade Allowed", a red bar." This should be a Black Bar (user definable) to match his system. The other 3 (Blue, Red, Green are correct)
Thats great that you will add the adjustable time ratio! That does make a big difference, thank you!
As for the short ema on price ... I haven't noticed a lot of differences from this, between when yours and Elders flashing a blue, Green, Red or (Black) Bars, but there are some.
I felt it was probably the least of the 3 things I mentioned before and I would guess the hardest to do... so it may not be worth the time and effort.
I also use some of your other Elder indicators like the safe zone stops and the Impulse System for example. I like to have that on my chart for the longer timeframes (which is different from this Impulse Release as you know)
So again I really appreciate all that you have done! I feel like Thanks is hardly enough that you volunteer these indicators!