- If the background or KDJ cloud turns green enter a long. Exit and possibly short when it turns red.
- You can wait for confirmation (1 bar close) but the longer you wait the more risk of missing a breakout
- Sometimes less is more (I prefer to hide everything and only show the KDJ cloud)
This indicator is a mimic of the same used by bitcoinwisdom.
There seems to be several different formulas to calculate KDJ, however, i have yet to find this one on tradingview.
The background color is green when J>D and red when J<D. The idea being that when we go green we should buy and when red sell.
Let me know if you have any questions.