kowal81 wrote: Tue Feb 02, 2021 7:26 am

This is how I see it:

The candle change color from gray to red when it's direction match the new created bias and candle closed below trend line - wait for 2nd dot and enter a trade (reversal).
The candle change color from red to gray when price made a significant low - exit a trade, wait for 2nd dot, wait for color change of candle to red (closed below trend line) - then reenter (trend continuation).

The candle change color from gray to blue when it's direction match the new created bias and candle closed above trend line - wait for 2nd dot and enter a trade (reversal).
The candle change color from blue to gray when price made a significant high - exit a trade, wait for 2nd dot, wait for color change of candle to blue (closed above trend line) - then reenter (trend continuation).

As you can see gray candles eliminate some trades (counter-trend moves - this is a move that creates a 2nd dot), but since this is a trend following system theoreticaly you should not take this moves.