The indicator measures ATR relative to VOLUME of each candle, marks the candles where there is more volume than in the previous one, but a lower ATR - signifying a compression in price movement - resistance. It also marks the candle where there is a greater ATR than in the previous candle, but lower volume - signifying an expansion in price movement - vacuum.
P.S. Bring indicator to FRONT to see the colored candles clearly
Hey again and greetins from Greece.i have one more question ,if you could reply..i am trying to use the indicator but after a while or seconds the color dissapear from the bars,and i have to get in and out to reappear ..any idea?
When the red candle appears in the downtrend then it means support? And the blue in downtrend is continuation?also can I use it in lower tf as 1h 15m?Thank u!
zeezeetop
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@greekpirate82, it depends where and in what direction. If there is a pullback and you see a red, then it means support for the trend and continuation. If there is a double top and you see a red, it means resistance and reversal. Blue candle is basically confirmation of the present momentum, red candle resistance to the momentum. Red can also be a breakout point, and blue final exhaustion before reversal. Use wisdom.