TL Three-Color Candle

A traditional candle only has two colors, either green or red. A TL candle goes one step further, it has three colors: green for bullish (perfectly bullish), red for bearish (perfectly bearish), and yellow for ranging (wake-up, sleeping). A green TL candle means that its close is not only higher than its open but also higher than previous close, previous open and especially previous high, among other conditions. In the other extreme, a red TL candle indicates that its close is not only lower than its open but also lower than previous close, previous open and especially lower than previous low, among other conditions. TL candle does its best to tackle the trap of going against the trend: short when the price seems to be high in an uptrend or buy when the price seems to be low in a downtrend.

Parameters:
Volume Active Percentile %, Min Height Percentile of Bullish/Bearish Candle %. (Intraday)
Back Two Candles. (Intraday, day and above)

Usage:

• After adding TL3CC to the chart, find Visual Order or Object Tree and bring TL3CC forward to be above the chart candle.
  
• While a bullish trend includes green and yellow TL candles, a bearish trend includes red and yellow ones. It is the best to enter after the first bullish/bearish TL candle of each trend. It is extremely important, never ever try to go against TL candle.
  
• There are many cases when red and green TL candles are twisted and we could have profit in both directions. It is the time that market is fluctuating strongly. We enter when TL candle has one color, but it changes to the opposite color after that as the price pulls back. In those cases, be calm and patient to wait for the first reversal to exit, it should come.
  

Markets: Developed and tested on: US100. Timeframes: Developed and tested on: 30m.

Versionshinweise:

Add criterion ‘TR of Bullish/Bearish Candle > ATR’. It can eliminate more wrong signals, but as a trade-off, it cannot smell of a few trends. Of course, the former has more cases than the latter. Uncheck it, we see more opportunities, but use it cautiously and/or combine with other indicators. Check it, we see less opportunities, but when they come, the winning probability is extremely high.
In terms of accuracy, there are four types of a signal. Type-A signals are correct in both time and price: We have profit right after the entry and the price goes in favor after that. Type-B signals are correct in time only: We have profit right after the entry, but the price goes against after that. Type-C signals are wrong in time only: We have loss right after the entry and the price goes in favor after that. Type-D signals are the most terrible, wrong in both time and price: We have loss right after the entry and the price continue to go against after that. In the context of evaluating the indicator here, when we say a signal is correct, it is at least type-B.
In terms of error, there are two types of an error in this context. An indicator has a type-A error when it generates a wrong signal. Less severely, an indicator has a type-B error when it does not catch a correct signal.

Versionshinweise:

Add illustration for v2.0.

Versionshinweise:

• Add Status Bar to see the trend of the current timeframe and two other higher timeframes (medium, high).
• Ability to uncheck the whole Status Bar.
• Ability to uncheck any higher timeframe which is not necessary.

Versionshinweise:

Add option Body of Bullish/Bearish Candle > ATR.

Versionshinweise:

Add Elephant and Hammer: When checked, a green/red TL will keep its color if it is also either an elephant bar or a hammer bar, a yellow TL will become green/red if it satisfies the conditions of an elephant bar or a hammer bar.

Versionshinweise:

Change Elephant and Hammer to Elephant (Day and Above) and Hammer (Day and Above): These parameters are used in day-and-above timeframes only.

Versionshinweise:

• Change Elephant (Day and Above) to Pig and Elephant, it is smoother for higher timeframes.
• Change Hammer (Day and Above) to Hammer and Tail.
• Add X on Long Pole, X on Short Pole, Out-of-Cover Sword.

X on Long Pole

X on Short Pole

Out-of-Cover Sword

Versionshinweise:

Add One-Candle Stop Loss / Extension Entry (EE).