Byzantium 4D Chess
What?
This indicator contains a bunch of tools based on volume metrics.
Content
The indicator includes:
Bar coloring
Green: up move and volume is higher than the previous candle.
Blue: up move but volume is lower than the previous candle.
Red: down move and volume is higher than the previous candle.
Orange: down move but volume is lower than the previous candle.
Chess pieces
King: big up candle on high volume.
Bishop: big up candle on significant volume, but less than the king.
Pawn: big down candle on high volume.
Knight: big down candle on significant volume, but less than the pawn.
Chess piece coloring is based on the bar coloring.
What is considered "high volume" is based on an average from past volume and then a deviation is taken.
What is considered "a big move" is based on the ROC (rate of change) principle, but all values are made positive and then a deviation is taken.
Trading
Bar coloring
If price is trending is should be supported by volume.
Thus up candles for example should preferably be green.
If an up candle is blue but it's a consolidation candle (small % move) that's fine.
Even a large candle with blue coloring isn't immediately a bad sign, but if you have a bunch of consecutive up candles with blue coloring that's definitely not ideal.
Volume should support the trend.
Chess pieces
When you see a break-out happening it should be supported by significant volume.
That's where the chess pieces come in. They show you whether the volume is considered enough to support the move.
A bunch of kings and or bishops in a row is a very good sign. It means that the break-out or rally is real.
Vice versa the same rules apply to the pawn and knight chess pieces.
When you see a chess piece it could potentially also mean a reversal.
If price is going down for example and you then see a king, that could mean a (temporary) reversal.
This has to be used in context though.
It's not as simple as "king is bull, pawn is bear".
Pawns for example don't only appear at a local top (signaling that the rally might be over because sell volume is high), it can also appear near local bottoms.
Bottoms usually form during a volume climax. So it's possible that you'll see multiple pawns or knights appear when a bottom is near.
If there's actually a bottom forming then you should also be seeing kings and bishops.
Triangle shapes
The triangles are better for spotting local tops and bottoms.
It's based on a deviation from a volume weighted moving average.
If price is deviating too much from that average, a triangle appears and those are usually pretty good at signaling at least a temporary reversal.
Triangles in combination with chess pieces are even better signals.
The indicator works on all charts, on all timeframes.
If you switch timeframes or switch to more volatile assets you might want to adjust the deviation thresholds.
Everything can be adjusted.
Current settings are what I think is ideal for BTC.
For access send me a private message.
This indicator contains a bunch of tools based on volume metrics.
Content
The indicator includes:
- Bar coloring that shows whether each move is supported by volume or not
- Chess symbols that show when there is significant volume during a break-out or break-down
- Triangle shapes based on the deviation of price compared to a volume weighted moving average
Bar coloring
Green: up move and volume is higher than the previous candle.
Blue: up move but volume is lower than the previous candle.
Red: down move and volume is higher than the previous candle.
Orange: down move but volume is lower than the previous candle.
Chess pieces
King: big up candle on high volume.
Bishop: big up candle on significant volume, but less than the king.
Pawn: big down candle on high volume.
Knight: big down candle on significant volume, but less than the pawn.
Chess piece coloring is based on the bar coloring.
What is considered "high volume" is based on an average from past volume and then a deviation is taken.
What is considered "a big move" is based on the ROC (rate of change) principle, but all values are made positive and then a deviation is taken.
Trading
Bar coloring
If price is trending is should be supported by volume.
Thus up candles for example should preferably be green.
If an up candle is blue but it's a consolidation candle (small % move) that's fine.
Even a large candle with blue coloring isn't immediately a bad sign, but if you have a bunch of consecutive up candles with blue coloring that's definitely not ideal.
Volume should support the trend.
Chess pieces
When you see a break-out happening it should be supported by significant volume.
That's where the chess pieces come in. They show you whether the volume is considered enough to support the move.
A bunch of kings and or bishops in a row is a very good sign. It means that the break-out or rally is real.
Vice versa the same rules apply to the pawn and knight chess pieces.
When you see a chess piece it could potentially also mean a reversal.
If price is going down for example and you then see a king, that could mean a (temporary) reversal.
This has to be used in context though.
It's not as simple as "king is bull, pawn is bear".
Pawns for example don't only appear at a local top (signaling that the rally might be over because sell volume is high), it can also appear near local bottoms.
Bottoms usually form during a volume climax. So it's possible that you'll see multiple pawns or knights appear when a bottom is near.
If there's actually a bottom forming then you should also be seeing kings and bishops.
Triangle shapes
The triangles are better for spotting local tops and bottoms.
It's based on a deviation from a volume weighted moving average.
If price is deviating too much from that average, a triangle appears and those are usually pretty good at signaling at least a temporary reversal.
Triangles in combination with chess pieces are even better signals.
The indicator works on all charts, on all timeframes.
If you switch timeframes or switch to more volatile assets you might want to adjust the deviation thresholds.
Everything can be adjusted.
Current settings are what I think is ideal for BTC.
For access send me a private message.