Synthetic Period Candles Colored by Bear and Bull Power

Summary

This document describes an indicator that constructs synthetic Japanese candlesticks across a user-defined period, using values from a Bear-Bulls-Power candle indicator. The displayed candle colors encode both the direction of the candle and whether its close rose or fell relative to the preceding candle: brighter shades mark closes moving in the candle’s direction, while paler shades mark closes moving against it.

The description explains the visual encoding and notes that the implementation relies on smoothing library classes. It provides no formula, parameter guidance, trading rules, chart results, or performance evidence, so the indicator’s predictive value and practical limits cannot be assessed from this text alone.

Key ideas

• The indicator aggregates Bear-Bulls-Power candle values into synthetic candles over a configured period.
• Candle colors distinguish rising and falling bars.
• Shade intensity signals whether the close moved in the same direction as the prior close.
• The document gives no evidence that the visual signals predict returns.

Tags

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