Magic Circles indicator uses an ATR based trend indicator in conjunction with a Parabolic SAR indicator for creating signals. Blue is neutral. Green is buy and red is sell. A hollow green circle followed by a regular green indicates a strong buy while a hollow red circle followed by a regular red one indicates a strong sell signal. This version gives you the option to choose your own magic number. Default is 1.618 also known as the golden ratio. The indicator works best at trending markets.
Version 3 comes with ADX filtering to avoid misleading signals and set on by default. Also you can now see the support / resistance levels. Another option added is showing the current trend direction.
ADX is Average Directional Index and founded by Welles Wilder. Wilder published his work in his book titled New Concepts in Technical Trading Systems (1978).
Do signals appear during the duration of the candle it shows on or at the close of that candlle...meaning it really appears when the previous candle has started? Do signals blink or ? Repaint?
rollas
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@iamtailormademoney, They appear during the duration of candle formation. but ADX filterin may cause no signals at some bars. If you want to see all signals close ADX filtering from options.
AYEHAN
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What is magic number do? Also can you add trackline for trend ... Color changing one like red, green and yellow for caution etc etc
rollas
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@AYEHAN, Magic number is a multiplier for the support and resisteance bands. I will update the indicator to Pinescript V5 When I have time. I will add a trackline in that version...
AYEHAN
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@Coinvoke, thank you will be waiting, any work around to use charts without Automode, if i do dcircles are all over the screen ..... and why is everything in 4 ... Buy Sell Netural ..... Please define each color what its do
AYEHAN
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@Coinvoke, yes Pls, also T(tops) B(bottoms), and R(reversals) making it a complete action pack... I have other suggestions too if you like
gammabean
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why does everyone complain about repaint??? just wait for the close...am i missing something???
thedaddy786
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@gammabean, yes you are missing the issue. Repaint means that an indicator shows a sell, a few candles later that sell was a bad trade so it goes back and deletes that signal. When you look at the chart historically it seems the indicator was superbly accurate - but that was not the case in real time trading! It is very very bad if an indicator repaints in this way. However, a signal will come and go during the candle - this is NOT repainting and you are correct is suggesting we should wait for candle close before trading a signal