This indicator can be used as a tool to measure the strength of the current trend. It is also trying to achieve to alert traders on when a trend can shift.
In order to achieve this, it uses three simple indicators:
1: 9 Simple moving average
2: 50 Simple moving average
3: Rsi (14)
The moving averages are used to define the current trend of the market, and the rsi is used to measure the strength. We use a color gradient to reach our second goal with this indicator.
The gradient is calculated based on the rsi value, which means the trader can use this indicator to visualize the strength of the current trend. It also helps to alert the trader when the trend starts to shift.
Lets say we use green to signal a strong positive trend, and blue for a weak positive trend. The candles are green in a strong uptrend, and are getting more blue once the trend starts to weaken.
As soon as the trend shifts from bullish to bearish, the bars become a diferent color.
In order to achieve this, it uses three simple indicators:
1: 9 Simple moving average
2: 50 Simple moving average
3: Rsi (14)
The moving averages are used to define the current trend of the market, and the rsi is used to measure the strength. We use a color gradient to reach our second goal with this indicator.
The gradient is calculated based on the rsi value, which means the trader can use this indicator to visualize the strength of the current trend. It also helps to alert the trader when the trend starts to shift.
Lets say we use green to signal a strong positive trend, and blue for a weak positive trend. The candles are green in a strong uptrend, and are getting more blue once the trend starts to weaken.
As soon as the trend shifts from bullish to bearish, the bars become a diferent color.