71 Cygni
Calibrated for 1-min / 5-min timeframe
🔷 OVERVIEW Cygni 71 Algorithm is a TradingView indicator designed for short-term trading (scalping) and enhancing the precision of your entries/exits based on a higher timeframe market context. It analyzes the underlying volume behind market movements and colors the candles with the help of the Heiken-Ashi methodology to provide a clearer perspective on the market's potential direction and intentions. 🔷 KEY FEATURES ▊ Candle Coloring ▊ Upper Colored Bar ▊ Lower Colored Bar 🔷 HOW DOES IT WORK? □ Candles will color in reference to the Heiken ashi "average bar" methodology, which uses a modified formula based on two-period averages. This way, you can observe the normal candlesticks with less noise as colors will suggest the most likely direction where the market might be heading. □ Upper Colored Bar analyzes daily volume dynamics in the market's price action by referencing the daily average price weighted by volume. If the market is bullish, you’ll see the green bars, and if the market is bearish, the bars will color red. □ Lower Colored Bar analyzes volume dynamics and the market's price action every few second and minute intervals by referencing average price weighted by volume. This makes it much more sensitive than the Upper Colored Bar. If the market is bullish, you’ll see the green bars, and if the market is bearish, the bars will color red. 🔷 HOW TO USE IT? □ In general, we look for areas where all components are in sync. These are valid trading signals (refer to the usage example below). □ If all components are not in sync, we should look for at least two of them to be in sync while one of them must be Upper Colored Bar. □ Candle Colors: Looking for longs when the candles are green and looking for shorts when the colors are red □ Upper Colored Bar: The most important component of this indicator is that we favor trading in the direction suggested by this component. Additional confirmation of other components is a bonus. The green color suggests a bullish market, trading long. Red color suggests bearish market, trading short. □ Lower Colored Bar: This should not be used on its own but always combined with at least one of the other components due to its sensitivity. Colors are indicating longs when green and shorts when red. 🔷 COMBINING THE COMPONENTS Each component of the indicator serves it's own purpose and analyzes the market from it's own perspective and with its own custom settings and formulas. The calculation of the individual component is done independently from other components. Once all of them align, we're able to execute trades with an edge as it signals that different aspects of volume and price analysis line up for the trading opportunity. - Candle Colors are used for improving the timing of your entries/exits based on market structure - Upper Colored Bar is used for determining the favorable direction of the market based on Daily Volume Dynamics. - Lower Colored Bar used for determining the favorable direction of the market based on Second/Minute/3-minute Volume Dynamics. It's important to combine the components to increase the probability of success - here's how you should look for a trade: 1. Assess the current most favorable market direction by referencing the Upper Colored bar, look for longs if it’s green and for shorts if it’s red 2. Look for the Candle Colors to align with the Upper Colored bar, look for longs if it’s green and for shorts if it’s red 3. Look for short-time frame volume dynamics to align with your entries, by referencing the Lower Colored Bar - look for longs if it’s green and for shorts if it’s red. A valid example of the trade would be: - Upper Colored Bar is green, indicating the favorable trading directions is long - Lower Colored Bar is green, indicating the favorable trading directions is long - Candle Colors are green, indicating the market structure is favorable to enter your positions
📊 USAGE EXAMPLE
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