alexgrover

Function To Candles - Another way to see indicators

Introduction

There are different and better way's to see price data, a candlestick chart is one of the best way to see the price since you have access to the open/high/low/close information, this is really efficient and can allow for naked non parametric trading strategies ( candlesticks patterns). But what about making candles out of indicators ? There are tons of studies about candlesticks patterns in price data but none (?) about candlestick patterns using indicator data, therefore i made this script in order to show candles from various indicators, i also made an heikin-ashi mode.

Rsi To Candles

All the indicators are use the open/high/low/close price as input in order to return candles. length control the indicator period.


Stochastic To Candles

The stochastic oscillator is restrained in a range of 0/100, therefore when equal to 0 or 100 the candles can be flat.


Rate Of Change To Candles

The rate of change don't distort price as heavily as other indicators since its based on differencing.


Center Of Gravity To Candles

The center of gravity (cog) is defined from tradingview as "an indicator based on statistics and the Fibonacci golden ratio", its not an indicator i'am familiar with and i don't know if its the same proposed by Elhers. The candles are smooth, high length can flatten the candles heavily making them hard to see.


Correlation Oscillator

In a range of -1/1 this indicator is quite smooth and can also flatten candles.


Patterns And Heikin-Ashi

There are tons of patterns that can be generated from candlesticks , they can be applied to this indicator as well.

The indicator can show an heikin-ashi mode, heikin-ashi candlestick use averaging to plot candles, this is why they appear smoother, some signals generated from heikin-ashi candles are :

  • Bullish body with no lower shadows = Strong Uptrend
  • Bearish body with no higher shadows = Strong Downtrend
  • High range and small body = Indecision/Risk of reversal

Conclusion

I made an indicator able to draw candles from other indicators, those candles contain various information that can generate decision from patterns. I hope you find a use to it, if its the case share your findings with me, maybe that you will even be able find a new candlestick pattern :)

Thanks for reading !



Patreon: https://www.patreon.com/alexgrover

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You can also check out some of the indicators I made for luxalgo : https://www.tradingview.com/u/LuxAlgo/#published-scripts
Script de código aberto

Dentro do verdadeiro espírito TradingView, o autor deste script publicou ele como um script de código aberto, para que os traders possam compreender e checar ele. Um viva ao autor! Você pode usá-lo gratuitamente, mas a reutilização deste código em uma publicação é regida pelas Regras da Casa. Você pode favoritá-lo para usá-lo em um gráfico.

Aviso legal

As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.

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