The candle coloring feature allows the user to change the body color of the candles/bars when using candlesticks or bar charts. Three coloring modes are available, with two of them being based on the previously described signal methodologies.
Candle coloring also works on charts using Heikin-Ashi, Renko, Kagi, line break, point and figure, and range candles.
Each mode can be enabled from the settings in the candle color mode dropdown menu.
In order to use candle coloring as properly as possible make sure to disable the borders setting in your chart settings.
The confirmation simple color mode is based on the methodology used by confirmation signals and is the one enabled by default. This mode uses three colors, each one can be interpreted as follows:
- Green candles: Strong bullish signal active.
- Red candles: Strong bearish active.
- Purple candles: Normal bullish or bearish signal active.
If you need to set an alert based on candle coloring or need to return information on what is the current candle color on an alert message simply use the Bar Color Value variable. This variable as three possible values each indicating the following:
- 1: Candle color is green
- 0: Candle color is purple
- -1: Candle color is red
This variable can be used as input for external indicators as well.
The confirmation gradient color mode is also based on the algorithm that generates confirmation signals, but will slightly differ from the previously described confirmation simple color mode.
Lighter green colors indicate strong bullish variations, while lighter red colors indicate strong bearish variations. Colors closer to purple indicate that the current variation might be a retracement or that the market is ranging.
The contrarian gradient color mode is based on the contrarian signals algorithm. Stronger green colors indicate an oversold market and a potential reversal, while stronger red colors indicate an overbought market.