Clear Method Candles: A Price-Only Swing Trend Indicator

Summary

The Clear Method Candles indicator colors bars according to a swing direction derived solely from price. Blue candles denote a positive swing and red candles a negative swing. The method tracks evolving high and low reference levels, then switches the swing state when price crosses the relevant boundary. It is described as having no configurable parameters and as being based on a related histogram indicator.

The document gives the state-transition rules in terms of highs, lows, and prior reference levels, but does not provide worked chart examples, signal timing details, or tests of trading performance. Because the method is price-only, it avoids dependence on other indicators, though its practical behavior still depends on how the swing levels are initialized and updated. The description can help explain the indicator’s trend-coloring logic, but it does not specify entry, exit, or risk-management rules for turning the colors into a complete trading strategy.

Key ideas

• The indicator colors candles blue for positive swings and red for negative swings.
• It determines swing direction from price highs and lows without combining other indicators.
• The swing state changes when price moves beyond tracked reference levels.
• The document explains indicator logic but supplies no performance evidence or complete trading rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.