█ Overview The Price Action Color Forecast Indicator, is an innovative trading tool that uses the power of historical price action and candlestick patterns to predict potential future market movements. By analyzing the colors of the candlesticks and identifying specific price action events, this indicator provides traders with valuable insights into future market behavior based on past performance.
█ Calculations The Price Action Color Forecast Indicator systematically analyzes historical price action events based on the colors of the candlesticks. Upon identifying a current price action coloring event, the indicator searches through its past data to find similar patterns that have happened before. By examining these past events and their outcomes, the indicator projects potential future price movements, offering traders valuable insights into how the market might react to the current price action event.
The indicator prioritizes the analysis of the most recent candlesticks before methodically progressing toward earlier data. This approach ensures that the generated candle forecast is based on the latest market dynamics.
The core functionality of the Price Action Color Forecast Indicator:
Analyzing historical price action events based on the colors of the candlesticks.
Identifying similar events from the past that correspond to the current price action coloring event.
Projecting potential future price action based on the outcomes of past similar events.
█ Example In this example, we can see that the current price action pattern matches with a similar historical price action pattern that shares the same characteristics regarding candle coloring. The historical outcome is then projected into the future. This helps traders to understand how the past pattern evolved over time.
█ How to use The indicator provides traders with valuable insights into how the market might react to the current price action event by examining similar historical patterns and projecting potential future price movements.
█ Settings Candle series
The candle lookback length refers to the number of bars, starting from the current one, that will be examined in order to find a similar event in the past.
Forecast Candles
Number of candles to project into the future.
----------------- Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
What time frame have you had the most success with this model? Thanks for the script and sharing!
Zeiierman
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@MSTRKRFT, It's an experimental forecast script that we have not backtested. :)
mckeecamryn
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Thank you for the script. Does it repaint? I checked it on daily time frame and it didn't generate anything.
Zeiierman
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@mckeecamryn, Hey, if you can't see a forecast means that the indicator did not detect a similar historical pattern. Try to decrease the Candle Series length in the setting panel.
mckeecamryn
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@Zeiierman, thank you for the reply. Indeed when I set Candle Series length it detected in reply mode. It also would be great to see some stats about forecast.
marymartin722
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The best analysis of your candles series is longer or shorter period?
likesme
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its give diffirent patterns in candles and heikin ashi any explanation please (frame 1 day ETHUSDT)
CoffeeshopCrypto
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@likesme, because you should not be using Heikin Ashi to trade. Heikin Ashi is the AVERAGE CLOSE of the Japanese candles. They are the average of the OHL and C separately. Japanese Candles are the ACTUAL close of the O H L and C
pibarrg
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Hi. @Zeiierman : 1. Did you run the backtesting? 2. Which will be the best time frame to run the script? (e.g. on Bitcoin USDT)
defiant063
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It doesn't work well. Often a red exclamation mark appears and from then on it does nothing. :(