77 Cygni
Calibrated for 4-hour / 1-Day timeframes
🔷 OVERVIEW Cygni 77 Algorithm is a TradingView indicator designed to help determine higher timeframe market context and long-term market sentiment and trends. It analyzes the underlying volume behind market movements and colors the candles with the help of formulas that include technical analysis and market price action. It caters to traders looking for swing trading setups or additional perspectives for day trading sentiment. 🔷 KEY FEATURES ▊ Candle Coloring ▊ Dynamic Support & Resistance Lines ▊ Dots | Above and below the candles ▊ Colored Bar | on the bottom of the chart 🔷 HOW DOES IT WORK? □ Candle colors will indicate the general market trend from the technical analysis perspective. The calculation for this component uses price action concepts and segments from technical analysis, for example, candle/price structural breaks. Volume is not used for calculations of this component. □ Dynamic Support & Resistance Lines indicate the current market structure from the technical analysis perspective. The calculation uses pure price action and structural analysis of the current market movements. □ Candle Dots show what are the mid-term volume dynamics in the market by referencing the daily average price weighted by volume with the periods ranging from days to weeks. Candle Dots suggest what is the likely direction of the market's trend from the mid-term perspective. If the market is bullish, you’ll see the green dots printed below the candles, and if the market is bearish, the dots will color red and print above the candles. □ Colored Bar analyzes long-term volume dynamics and the market's price action for the past three to six weeks, referencing average price weighted by volume. This makes it much less sensitive than the Candle Dots, so the colors won't change that often. 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 the Colored Bar. □ Candle Colors: Looking for longs when the candles are green and looking for shorts when the colors are red □ Dynamic Support & Resistance Lines: Used for placing entries and stop-loss limits. Using retest of the line for entry and placing the stop-loss beyond it. Or if we're entering based on other components, we can use the line to place the stop-loss beyond it. □ Candle Dots: Looking to trade in the direction of the color. If the market is bullish, you’ll see the green dots, and if the market is bearish, the dots will color red. □ Colored Bar: Most important component of this indicator, we favor trading in the direction suggested by this component. Additional confirmation of other components is a bonus. Colors here don't change that often, but once they do - it usually signals a long-term trend shift. Green color suggests a bullish market, trading long. Red color suggests bearish market, trading short. 🔷 COMBINING THE COMPONENTS Each component of the indicator serves its own purpose and analyzes the market from its own perspective and with its own custom settings and formulas. The calculation of the individual component is done independently from the calculation of the other components. Once all of them align, we can execute trades with an edge as it signals that different aspects of volume and price analysis line up for the trading opportunity. -Candle Colors performs technical analysis for you by displaying the colors of a favorable market direction based on the market's current technical structure. - Dynamic Support & Resistance Lines are used for placing your entry/exit limit orders. -Candle Dots are used to determine the favorable direction of the market based on Daily Volume Dynamics, with custom timeframe settings ranging from a couple of days to a couple of weeks. -The Colored Bar is used to gauge the overall favorable trading direction based on Daily Volume Dynamics with custom timeframe settings ranging from 3 to 6 weeks. 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 Colored Bar. Look for longs if it’s green and for shorts if it’s red 2. Look for the Candle Dots to align with the Colored Bar, look for longs if it’s green and for shorts if it’s red 3. Look for the Candle Colors to align with the Colored Bar. Look for longs if it’s green and for shorts if it’s red 4. Place your SL level beyond the currently developing Support/Resistance line to protect your positions and look for exits once the colors change. A valid example of the trade would be: - Colored Bar is green, indicating the favorable trading directions is long - Candle Dots are 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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