Trend Candles indicator is calculated using the Stochastic indicator, it helps to imagine Stochastic indicator visually more convenient for a trader. indicator points may be four colors depending on the current market trends.
Method of calculating the index:
- Core values ​​and signal lines Stochastic indicator initially determined.
Further, the following conditions are checked: if more than [80] The main line of Stochastic - it defines a small downward trend (orange dots). If the main line of the Stochastic is less than [20] - it defines a small upward trend (light green dots). If the main line stochastic more [80], and thus its value is greater than the signal line - a condition yavlyantsya sell signal (red dots). If the main line stochastic less [20], and thus its value is less than the signal line - it is a signal for purchase (green spots).
Based on the foregoing:
- Green dots indicate the presence of a strong bullish trend.
- Red dots indicate a bearish trend.
- Dark green and orange dots indicate that the market is not trending.
