OPEN-SOURCE SCRIPT
shadow bar
Updated
This indicator shows a new formation of retrospective candlestick bars of one period (n) of time.
In this way the trader can see how the traditional bars are part of a larger formation that can show a trend or a range.
The new shadow bars are drawn with a degree of transparency that makes it possible to distinguish traditional candlesticks;
and where shadow candles can be seen as support or resistance to traditional candlesticks.
When the traditional candlesticks are the same size as the shadow candlesticks, it can be expected that we are forming a compression or range that will result in a strong move.
In addition to the shadow bars, there is a ribbon created from the new candlestick data that is formed as a line from the linear regression function and another that is the previous line smoothed by its exponential moving average. This tape allows you to see the trend more clearly and at the crossovers of the lines that form possible reversals or continuations of the trend. The indicator has the timeframe field active, which allows the indicator to be displayed in other temporalities.
*The closing price of the new bars is the same as that of the traditional bars.
* The tape is turned off by defa
In this way the trader can see how the traditional bars are part of a larger formation that can show a trend or a range.
The new shadow bars are drawn with a degree of transparency that makes it possible to distinguish traditional candlesticks;
and where shadow candles can be seen as support or resistance to traditional candlesticks.
When the traditional candlesticks are the same size as the shadow candlesticks, it can be expected that we are forming a compression or range that will result in a strong move.
In addition to the shadow bars, there is a ribbon created from the new candlestick data that is formed as a line from the linear regression function and another that is the previous line smoothed by its exponential moving average. This tape allows you to see the trend more clearly and at the crossovers of the lines that form possible reversals or continuations of the trend. The indicator has the timeframe field active, which allows the indicator to be displayed in other temporalities.
*The closing price of the new bars is the same as that of the traditional bars.
* The tape is turned off by defa
Release Notes
This new version includes 3 additional candle formations to the original; each candle formation is made up of new values for open, close, high and low.
In each formation the closing price is maintained as that of the current candle;
while the open is that of the retrospective candle.
f1: low(n), high(n)
f2: (low[n] + low)/2 ,
(high[n]+high)/2
f3: lowest minimum and highest maximum of the period
f4: linear regression for minimums and maximums
Release Notes
In this new version the extreme lines are included, which correspond to the maximum and minimum only of the type of bar formation (f3).From these extreme lines, 2 new lines are calculated based on the golden ratio (0.618 and 0.382); In addition to this, the midline or 0.5 is included.
These lines and the extremes show levels with a probability of reversal or continuation of a price trend. In many cases the price moves in a range within the golden lines.
The number of bars looked back must be adjusted with respect to each temporality and the analyzed asset; This is the responsibility of the trader to make a proper analysis.
In addition to this, bugs in the code have been fixed and more options have been added to the input menu.
Release Notes
* Introduced option: Automatic selection of bars back.* Relocated sail formation types
* The 0.786 fibo level is included for the f1 candlestick formation
* The concept to determine the color of the candles was modified
Release Notes
*Automatic bars back selection, now disabled by default.*Fixed a menu error
Release Notes
* The plot's information in the status bar has been suppressed to improve visualization.Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
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