How Do We Use It?
The GRaB candles are painted candles based on the relationship between the close of a candle and these averages. With the premium version of the indicator, you can set custom alerts to trigger based on the current or change in color on the GRaB candles. In addition, we’ve added both the 13 and 21 period EMA.
– A candle paints green when it closes above the 34-bar EMA of the high.
– A candle paints red when it closes below the 34-bar EMA of the low.
– A candle paints blue when it closes between the 34-bar EMA of the high and 34-bar EMA of the low.
GRaB candles are a visual aid in identifying not only the trend but also the sentiment and momentum in the market on any time frame. The colors of the GRaB candles still reflect traditional Japanese candlesticks with lighter and darker shades of green, red and blue. The lighter shades are akin to hollow or “up close” Japanese candles while the darker shades are akin to shaded or “down close” candles.
– Green candles indicate bullish sentiment and momentum
– Red candles indicate bearish sentiment and momentum
– Blue candles indicate neutral sentiment and momentum
Since a trend is organized sentiment and momentum, it is also important that green candles dominate a market that is moving upwards with higher highs and higher lows. Red candles should then dominate a downtrend (lower lows and lower highs). Blue GRaB candles dominate a market in consolidation and quick shifts between green, red and blue are a sign of volatility and congestion.
To activate an alert:
1) Right click on the chart and choose Add Alert.
2) In the Condition box select ST_GRAB
3) Choose one of the three candle color alerts from the drop-down.
4) Select other conditions as desired and then click Create.