Have you ever heard that each candle represents a battle between bulls (buyer) and bears (seller)? If you know the answer, apparently you understand what the price action means. What if I ask you, how much was bloody in each battle between bulls and bears?!. This indicator may give a clear picture of how to identify the candle’s strength by implementing the Standard Deviation on and reshape the candle.
The Muqwishi Volumetric Candles indicator works to weigh each candle instantaneously and updates its color level from lightness to darkness based on the rate of the volumetric standard deviation.
Here’s how the idea started with the conceptual design, then improved till achieved to the implemented design of a structured candle.
The conceptual design mentioned for reviewing how the idea started. However, I want you to understand the “implemented design” in which the indicator has been built to address it. As I stated structurally for the implemented design section, wick and border are identified by the user through “Chart Properties” unlike core and body is measured by the indicator.
The candle’s body is ”Dynamic” that colored based on the amount of standard deviation in which the low standard deviation is a lighter candle’s color and the high standard deviation is a darker candle’s color. The core is “Static” color represents zero standard deviation which the at the average level. In the case where the core is darker than the body means the standard deviation is lower than the average level, and when the core is lighter than the body mean the standard deviation is higher than the average level, and when the core’s color has the same body’s color means the is in the average level. The image is the best guide to understand the idea.
Rarely seeing a standard deviation below -2σ, even though the is apparently dead. However, it’s possible to see more than 3.9σ, and mostly it has the same effect as 3.9σ. Personally, any candle above 1.5σ is taking my attention, and more than 2σ I look around seeking for reasons to not take a trade.
§§ Note, if you have misunderstood the standard deviation concept, there are many great sources to understand it such as Wikipedia, YouTube,... etc. In a basic example, How much is your height relative to the height of average people in your city!!?. Similarly, how much is the amount of relative to the average of a number series of previous bars?!.
Before I get into this section, this is NOT meant to be an educational or recommendation. Just showing you how I use this indicator based on an experience.
The chart above has been remarked as an example of how I apply it. Again, it’s a personal preference, and it doesn’t mean this’s an efficient way.
➤ Ensure to visualize the indicator to the front for recognition of the candle’s core.
For more information check the image: https://drive.google.com/uc?export=view&id=1AaXhtnlYKz3hrbLZA6go30pE_k6gi6We
➤ Indicator’s title.
Generates two outputs. The first one is the coordinate location for the char “Core”, don’t pay attention to it. The second one colored in blue is referring to the measurement of the standard deviation as your cursor point move at any candle on the chart. For more information check the image: https://drive.google.com/uc?export=view&...
➤ Indicator’s inputs.
■ Length: Number of previous bars covered in the calculation. Prefer between 14-20.
■ Long Candle Color: Choose a color for candles.
■ Short Candle Color: Choose a color for candles.
■ Color Mode: Kinda color style.
● Lightness: From lightness to darkness colored as low SD to high SD .
● Saturation: From narrow range to wide range colored as low SD to high SD .
■ Reverse Mode: Yes → Darkness to Lightness colored as low SD to high SD .
■ Show Core: No → Hide cores.
■ Users should have a fundamental knowledge of Standard Deviation.
■ The candle’s body is dynamic colored. Got light as low standard deviation, and Dark as high standard deviation occurred.
■ The Candle’s core is static colored. Represents the average which Standard Deviation equals zero.
■ This’s not a trading signal. It works to visualize the level of transactions made per candle.
■ My goal was to achieve the conceptual design, but there’re many obstacles that go beyond the coding ability.
■ Let me know if you have any questions, comments, and any improvements to the project.
■ I hope every time you found this indicator useful and scaled up your trading skills, please present support through PayPal that linked in the signature box below. That will help to get me excited and post many ideas.
■ Trade Safe. ✌
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No worries. It seems clear to me what you're trying to refer to.
I recommended between 14 - 20 bars length because the average number of bars of chart pricing cycling from a clear pivot to pivot is usually between 14-20 bars. No, I apply 20 for lower timeframes. What I have presented in the chart is 5min with 20 bars in length. About the high volatility in the market these days, as I mentioned above in the table key, the trader should have knowledge in terms of the "Price Action and Volume".
I'm not very familiar with Cpk, Cpl, and Cpu, but I will get into them deeply to see what are they gonna brought to improve the indicator. Great Suggestion.
Always, I like to use this indicator to understand the movement of stock, not get into the trade blindly. For instance, when you find a stock that has 10 series bars red with Volume Standard Deviation around average, suddenly the Volume Standard Deviation spikes when the price reaches the lower of the previous day. Moreover, the market looks healthy at that moment. In this case, I will consider an entry because I understood how the price moves, and I expected it to go up because several reasons.
It is capable to practice it at all timeframes. Today, I used it in 15min timeframe, and mostly I use it at 1min - 5min. I'm planning to do an educational extension to this indicator to explain the possibility of using it.
Very valuable comment.Thank you.
I'm having trouble following what you're referring to. I'm gonna answer based on my understanding.
Accumulation or Distribution phases usually start and end with powerful candles. However, the middle candles remaining sideways. Let us take an example in $NIO. Check the chart below.
Please let me know if that what you were trying to ask
Thank you for commenting!
Thanks for commenting!