If you are here, it’s probably because you may have seen one of my charts on twitter or stocktwits. I am hoping that you are marveling about the simplicity of the chart. I designed the chart to deliver the information I wanted so that I could make an informed trading decision without fumbling through a hundred different indicators.
The chart utilizes the following indicators.
- Stochastic %K
The chart has built in algorithms to detect oversold and overbought conditions using the indicators above. When the chart finds an oversold condition beginning to form, it starts shading the candles green. It starts out with a light shade of green and goes darker for each consecutive candle that’s still oversold. When it detects a possible reversal, a rocket emoji is displayed on the chart.
The opposite is true for the moon emoji. The chart detects overbought conditions and starts shading candles red, it gets darker the more overbought the chart goes. When it detects a possible reversal, a moon emoji is displayed which signifies that we hit our destination.
The chart also has a VWAP line. This is not your ordinary VWAP line. Its shaded in green and red. The green and red represent the MACD and Signal line from the MACD indicator. When the MACD line is above the Signal line, the VWAP line is green, and when the MACD line is below the Signal line, the VWAP line turns red.
There are options in the script to fine tune the settings to your liking. You can make the RSI and STOCH indicators more or less sensitive which will change the way the chart interprets oversold/overbought signals.
The chart is designed to provide quality analysis on entry and exit points on any instrument on any time frame. If you would like access to the chart, its available as a monthly subscription. A TradingView account is a requirement.