Free TradingView Indicator by AlgoAlpha — Trend Following
Introducing the Enhanced Candle Sticks by AlgoAlpha, a Pine Script tool designed to provide traders with an enhanced view of market dynamics through candlestick analysis. This script aims to visualise if price has hit the high or low of the candle first, aiding in back-testing, and to identify smaller trends using market structure.
Users can select their desired timeframe for analysis, offering a range of options from M15 to H12. This flexibility allows for detailed and specific timeframe analysis.
The script includes an option to enable 'MicroTrends', giving traders insights into smaller movements and trends within the larger market context.
Traders can customize the colors of bullish and bearish candlesticks, enhancing visual clarity and personalizing the chart to their preferences.
The script tracks the 'state' of the market on lower timeframes to detect if the high or the low was formed first.
When the selected timeframe does not match the chart timeframe, the script generates a warning, ensuring accurate analysis and preventing potential misinterpretations.
Users can now get a more accurate interpretation of the candlesticks by know if the high or the low came first (denoted with ⩚ or ⩛), especially in scenarios where the high and the low of the larger timeframe candle is touching both the take-profit and stop-loss levels.
Users can identify squeezes in price when the microtrend shows both an uptrend and a downtrend, possibly giving more insight into the market.
Microtrends form when the low of the candle is consecutively increasing and the high is consecutively falling, which means on a lower timeframe, price is forming higher lows or lower highs.
Basic Logic Explanation:
The script starts by setting up the necessary parameters and importing the required library. Users can customize the timeframe, colors, and whether to enable micro trends and candlestick plotting.
It then calculates the lower timeframe (1/12th of the current timeframe) for more detailed analysis. The `minutes` function helps in converting the selected timeframe into minutes.
The script tracks new bars and calculates the highest and lowest values within an hour, using `ta.highestSince` and `ta.lowestSince`.
Explore other trend following TradingView indicators by AlgoAlpha.
Free on TradingView
Enhanced Candle Sticks is free to use on TradingView. Add it to any chart in seconds.