ColorBasedSystem

Function Name: ColorBasedSystem

Tags: None

Category: Volume

Most technical traders use some combination of price-based indicators to support their trading decisions. Here's a very simple swing trading system based on coloring volume bars. It can be used either as a standalone trading system or in conjunction with other trading systems. This is how it works: - If today's closing price and volume are greater than two weeks ago, color today's volume bar green. - If today's closing price is greater than two weeks ago but volume is not, color today's volume bar blue. - If today's closing price is less than two weeks ago but volume is not, color today's volume bar red.

It's a very simple color-based trading system that takes only long positions and works as follows: - Buy the green or blue volume bars using a 1% trailing stop and a one-period trailing stop delay. Stand aside on red or orange bars.

 

Source: Stocks & Commodities, July 2011: "A Color-Based System for Short-Term Trading"

 

period
	Default Value: 14  |  Minimum: 1  |  Maximum: 9999
	Type: Numeric
ShowLines
	Default Value: -1
	Type: Boolean