I want to explain the colors of the price bars since they are non standard on some of the charts. The basic idea is to identify the short term trend of price, not whether price was up or down from the last bar. The color is mostly based on PTS concepts I learned many years ago. For more information you can visit this link http://www.precisiontradingsystem.com/
There are four colors in the system.
Green - short term trend is up
White - no short term can be determined, price action is neutral
Red - short term trend is down
Blue - price is outside a 2 standard deviation Bollinger band, this means price is very extended
This color scheme will only appear on charts I present from TradeStation. Some of the charts come from the Telechart software and will have a standard coloring as there is no way for me to color the bars my way.
Technical indicator setup
Dark Green = 200 SMA
White = 100 SMA
Purple solid = 50 SMA
Light blue = 18 SMA
Yellow = 6 SMA
Red = 21 moving linear regression
Purple dashed = 50 Keltner channel
2 standard deviation linear regression channel
For an explanation of the trend indicator histogram (middle panel) look here.
Bob
3 comments:
Thanks for the tech indicator setup.
Looking at the chart, what conditions are necessary for you to determine that the short term trend is up, down and neutral?
E.g. Up trend = 6 SMA > 18 SMA with a close above 6 SMA?
I am not at liberty to disclose exactly how the colors are done. You would have to take the class from the PTS people in the link above.
Bob
Great Job! Really Thanks for your efforts.
Is this website is only for informational purpose..
How do I trade on the stock market?
Sensex
Sensex
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