This script creates a STDEV in a candle format overlayed on the actual candles. The STDEV candles lead with deviation to upside or downside. The Blue bars are Upside heads-up showing the strength of the uptrend before it happens. The Black candles are downside indicators pulling on the price I like price action because it is raw. So for High and Low I used the highest and lowest amount so when you trade you can see where the price is in relation to previous high and low
I use this script in conjunction with my first STDEV candles to get the full picture in short time frames. For example, when I see the STDEV of above 6 on change of direction then I trade on it before the trend begins and confirm it with STDEV overlay
If you have you been following my scripts you notice the code is very simple but the concept is very powerful. My hope is better pine script coders to build on these scripts and publish more out of the box type of scripts.
FAQ: The yellow and green are my short positions, they are not part of the scripts. STDEV candles are very effective LEADING indicators because they show the strength of the price in up trend or down trend. So, if STDEV is blue then market will go up and if Black market will go down. They are very good predictors based on previous price and rate of STDEV change. Reason I use it because ALGO makes lots of up and down move to eat the bid and asks and skews the actual trend. You can observe it in the level 2 Bid and ASK. I wrote a big piece on LAGO behaviour and been studying them for over a year.
Da-sein
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Very powerful idea. Was looking for a way to measure what I call the "grind (or overlap) index" as a way to see through how the overlapping price action masks the trend and this is far better visually and intuitively than anything I could have imagined.