Classifying Candles by Momentum Strength and News-Driven Expansion
Summary
This indicator description assigns candle colors to four states: green for bullish momentum, red for bearish momentum, gray for weak or absent momentum, and silver for news impact associated with candle expansion. It is intended to make directional price activity and unusually expanded candles easier to distinguish visually.
The default momentum period is four, which the description says is intended to detect sharp changes in momentum. It does not explain the calculation behind the classifications, define how news impact is distinguished from ordinary volatility, or provide charts, tests, or trading rules. The colors should therefore be treated as a visual encoding rather than evidence of predictive power; users would need to understand the underlying implementation before relying on it.
Key ideas
- Green, red, gray, and silver candles represent bullish, bearish, weak, and news-impact states, respectively.
- Silver marks candle expansion associated with news impact.
- The default momentum period is four and is described as detecting sharp momentum changes.
- The description omits the classification formulas and provides no evidence of trading performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.