- Normalized (by slow MA)
- Candle (fast MA length is set to 0 in candle mode, i.e. price minus slow MA)
- Multi color histogram
- Background coloring based on direction
- Choice of different MA types (Exponential, Simple, Weighted, Smoothed, )
Benefits of normalization:
- Absolutely better than for comparing across different periods and assets
Applications and benefits of candle visualization:
- Zero cross: most traders use MAs overlaid on the main chart and look for price distance and MA cross visually. In candle mode, this indicator measures the difference between price and the slow moving MA. When this indicator crosses zero, it means price is crossing the slow moving MA.
- Divergence: full candle visualization (OHLC) is not possible for most other indicators. Candle visualization allows measuring divergence between price high, low and close simultaneously. Some trades incorrectly measure divergence between high, low of price against indicator tops and bottoms while having the indicator input set to default (usually close). With this indicator, you don't need to worry about such complexities.
- Enjoy candle mode :)
- Source set to hlc3
Here is a example:
- changed some colors