Multi-Timeframe Candle Direction Signals and Their Repainting Risk
Summary
This indicator marks candles when their direction matches across selected timeframes. Users can enable or disable timeframes, receive an alert when a new arrow appears, and choose to display every matching candle or only arrows that mark a change in signal direction. A shift setting selects whether signals use the current candle or the previous completed candle.
The document highlights a key limitation of signals based on an unfinished candle: its direction can change before the candle closes, potentially removing or reversing the arrow. Historical testing may therefore show a different result from a signal observed live on the current candle. Using the previous candle avoids that specific source of instability but introduces a delay. The text explains the indicator's settings and gives an example configuration, but it provides no performance testing or evidence that aligned candle directions predict profitable trades.
Key ideas
- The indicator marks candles whose bullish or bearish direction matches across selected timeframes.
- Users can display all matching arrows or only arrows that signal a directional change.
- A signal based on the current, unfinished candle can disappear or reverse before the candle closes.
- Historical results may differ from live signals when the current candle is used.
- The indicator description provides no performance evidence for the signals.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.