The bars are colored GREEN if... 1.) The RSI (7) is above 50 AND 2.) The Stochastic (14, 3, 3) is above 50 AND 3.) The MACD (12, 26, 9) is above its Moving Average, i.e. MACD Histogram is positive.
The bars are colored RED if... 1.) The RSI (7) is below 50 AND 2.) The Stochastic (14, 3, 3) is below 50 AND 3.) The MACD (12, 26, 9) is below its Moving Average, i.e. MACD Histogram is negative.
If only 2 of these 3 conditions are met, then the bars are black (default color)
We highly recommend plotting the indicators mentioned above on your chart, too, so that you can see when bars are getting close to being "RED" or "GREEN", e.g. RSI is getting close to the 50 line.
This script is using %D instead of %K for Stochastic, which is suggested in The PowerX Strategy 2nd editoin.
To use %K, stochLine should be calculated as:
I've noticed that if you have the charts showing bars at different intervals such as 1M, 30M, 2HR, Day, Week, etc. that sometimes the bars will be different colors for the current day. What time interval is "best" to use to see if the bars are Green, Black, or Red?
weyland
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@Gary_R_Z,
This strategy has been tuned for DAILY candles. AND make your decisions based on the previous day's indicator. Dont watch it live. you can get shaken out of a position or get a false positive. Also, when entering a position, enter on the high from the last 3 candles. If the price doesn't go over your HIGH - then you dont have confirmation on the trend. (for shorting, use the LOW)
StonelessLemur
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@weyland, Could you elaborate on entering in on the high from the last 3 candles?
weyland
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@StonelessLemur, Basically - to confirm the trend is valid, wait for the price to take off. This is verified by the price breaking the previous high.
Gary_R_Z
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@weyland, it looks like the script might have been changed. I was looking at AAL after market close on 4/13 and the candlesticks are green signaling a buy, but both the RSI and the MACD signals are below with the PowerX strategy considers a buy signal. Am I missing something??
I'm not the author - nor do I know if they touched the code. Just a student/follower such as yourself. Dont know! We could delve into it if you message me. (I am working on other strats and ideas all the time - which is why I'm unaware if he's changed anything. The code LOOKS the same at a glance though.)
@StonelessLemur, I have been using daily, but also one hour and 4 hour as a type of sanity check and further indicators.
steveLan
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This program is using Stoch-D / plotting Stoch-D -
PowerX rules use Stoch-K 14,3
Most days the bar change a day to late. Would you please make the change if possible?
This script is using %D instead of %K for Stochastic, which is suggested in The PowerX Strategy 2nd editoin.
To use %K, stochLine should be calculated as:
```
stochLine = sma(stoch(close, high, low, 14), 3)
```