Combining Five Indicators to Color Candlesticks or a Line

Summary

This indicator builds on a prior colored-candlestick concept by allowing users to combine selected readings from the Commodity Channel Index, RSI, Stochastic, Cycle, and Directional Index. For each selected indicator, it transforms the reading into red and green components, averages those components across the chosen indicators, and uses the result to color candles. Users can instead display a colored line based on the difference between the green and red components.

The description explains the selectable inputs and output formats, and includes implementation logic, but gives no chart examples, tests, or evidence that the composite improves analysis or trading performance. The component indicators use different scales and are transformed with different multipliers, so the resulting average depends on those design choices. The document does not specify signal rules or explain how to interpret the colors. It presents a visualization tool, not a validated trading strategy.

Key ideas

• The indicator can combine selected readings from CCI, RSI, Stochastic, Cycle, and Directional Index.
• Each selected reading is transformed into red and green values before the values are averaged.
• The output can be shown as colored candlesticks or as a colored line with a zero reference.
• The document supplies no evidence that the visualization generates profitable or reliable trading signals.

Tags

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