The Price Action Color Forecast Indicator, is an innovative trading tool that uses the power of historical price action and candlestick patterns to predict potential future market movements. By analyzing the colors of the candlesticks and identifying specific price action events, this indicator provides traders with valuable insights into future market behavior based on past performance.
Calculations
The Price Action Color Forecast Indicator systematically analyzes historical price action events based on the colors of the candlesticks. Upon identifying a current price action coloring event, the indicator searches through its past data to find similar patterns that have happened before. By examining these past events and their outcomes, the indicator projects potential future price movements, offering traders valuable insights into how the market might react to the current price action event.
The indicator prioritizes the analysis of the most recent candlesticks before methodically progressing toward earlier data. This approach ensures that the generated candle forecast is based on the latest market dynamics.
The core functionality of the Price Action Color Forecast Indicator:
- Analyzing historical price action events based on the colors of the candlesticks.
- Identifying similar events from the past that correspond to the current price action coloring event.
- Projecting potential future price action based on the outcomes of past similar events.
Example
In this example, we can see that the current price action pattern matches with a similar historical price action pattern that shares the same characteristics regarding candle coloring. The historical outcome is then projected into the future. This helps traders to understand how the past pattern evolved over time.
How to use
The indicator provides traders with valuable insights into how the market might react to the current price action event by examining similar historical patterns and projecting potential future price movements.
Settings
Candle series
- The candle lookback length refers to the number of bars, starting from the current one, that will be examined in order to find a similar event in the past.
Forecast Candles
- Number of candles to project into the future.
