Candle colouring #
The candle coloring feature allows the user to change the body color of candles/bars when using candles or bar graphics. There are six coloring modes available, most of which are based on the signal methodologies described earlier.
Candle shading also works on graphs using Heikin-Ashi, Renko, Kagi, line break, point and figure, and range candles.
Each of these modes can be enabled from the candle tinting mode drop-down menu options.
To make the candle coloring as usable as possible, make sure you turn off “borders” in the chart settings.
The structure color mode is based on our algorithm and reflects the state of the structure by using the color mode transition through the candles. For the calculation we used our unique Smart Money Concepts method. Read more about Smart Money Concepts
The lighter the green of the candle the more bullish the price structure, while lighter green colours indicate a weaker bullish price structure. The lighter the red candle, the more bearish the price structure, while lighter red colours indicate a weaker bearish price structure. Colours closer to grey indicate that the current price movement may be a pullback or that the market is fluctuating or wavering.
Trend Sentiment #
The trend mood colour mode is also based on our algorithm, and reflects the trend mood by using a transition colour method on the candles.
The lighter the green of the candle, the more bullish the trend mood, while lighter green colours indicate a more muted bullish change. The lighter the red of the candle the more bearish the trend mood, while lighter reds indicate a weaker bearish change.
The Momentum colour mode is also based on our algorithm and reflects the momentum sentiment in the market by using a transition colour mode on the candles.
The lighter the green of the candle the more bullish the momentum, while lighter green colours indicate a weaker/weakening bullish momentum. The lighter the red of the candle the more bearish the momentum state, while lighter red colours indicate a weaker/weakening bearish momentum. Colours closer to grey indicate that the current price momentum may be a pullback or that the market is fluctuating, choppy and there is no defining momentum present.
TradeMaster Pro Momentum is a complex computational visual confirmation indicator that shows the strength and momentum of short-term price movements. It is a sensitive indicator that reacts quickly to small changes. Ideal for scalpers, but also for measuring trend strength. In fact, it is good for everything. Global -> Sensitivity affects sensitivity
**Note: this Global -> Sensitivity also affects the trend, but not the structure.
It visualises the presence of the volume that determines a given price movement. The bullish and higher the volume the greener the candle. The more bearish and higher the volume the redder the candle. Great to combine with volatility indicators and breakout strategies. The values can be changed under Indicator Values -> Volume, where the first value is related to the second based on a defined averaging formula. For scalpers and real-time measurement, the 1/10 and 3/14 settings are recommended, for swing trading and fundamental analysis, slightly higher values are set.
The displacements of a given device in its own range of motion are examined and evaluated objectively, using appropriate mathematical calculations. The test is applied to each instrument’s own behaviour, so the volatility factor may vary from pair to pair (in some cases a movement of a few percentage points may be volatile, in others tens of percentage points may not). The colour scale ranges from grey to red, where grey indicates low volatility price movements and red high volatility price movements. Zones marked in blue are called squeezes, indicating a contraction in price action with decreasing volume. This can mean consolidation, accumulation, often followed by a price boom. The volatility squeeze is intended to draw attention to this. Look for volatility as a primary filter when selecting asset pairs, as higher volatility means a higher range of movement with higher potential returns. Let’s use the volatility squeeze for short-term profit taking, identifying bounces and liquid patterns.
If you find the chart with divergences (Segments -> Divergences) overwhelming, you can choose to colour-code the divergences on the candles themselves. The greener the candle, the more bullish divergences there are. The redder the candle the more bearish divergences are concentrated on that candle.
***Warning: the settings under the Divergences tab affect the display.