There are different and better way's to see price data, a chart is one of the best way to see the price since you have access to the open/high/low/close information, this is really efficient and can allow for naked non parametric trading strategies ( patterns). But what about making candles out of indicators ? There are tons of studies about patterns in price data but none (?) about patterns using indicator data, therefore i made this script in order to show candles from various indicators, i also made an heikin-ashi mode.
Rsi To Candles
All the indicators are use the open/high/low/close price as input in order to return candles. length control the indicator period.
Stochastic To Candles
The oscillator is restrained in a range of 0/100, therefore when equal to 0 or 100 the candles can be flat.
Rate Of Change To Candles
The don't distort price as heavily as other indicators since its based on differencing.
Center Of Gravity To Candles
The center of gravity (cog) is defined from tradingview as "an indicator based on statistics and the Fibonacci golden ratio", its not an indicator i'am familiar with and i don't know if its the same proposed by Elhers. The candles are smooth, high length can flatten the candles heavily making them hard to see.
In a range of -1/1 this indicator is quite smooth and can also flatten candles.
Patterns And Heikin-Ashi
There are tons of patterns that can be generated from , they can be applied to this indicator as well.
The indicator can show an heikin-ashi mode, heikin-ashi use averaging to plot candles, this is why they appear smoother, some signals generated from heikin-ashi candles are :
- Bullish body with no lower shadows = Strong Uptrend
- Bearish body with no higher shadows = Strong Downtrend
- High range and small body = Indecision/Risk of reversal
I made an indicator able to draw candles from other indicators, those candles contain various information that can generate decision from patterns. I hope you find a use to it, if its the case share your findings with me, maybe that you will even be able find a new pattern :)
Thanks for reading !
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You can also check out some of the indicators I made for luxalgo : https://www.tradingview.com/u/LuxAlgo/#published-scripts