This Candle Length Average Multi-timeframe (CLAM) indicator started as an experiment to try to filter out market noise and spot signals others are missing. Understanding exactly what it is showing is a work in progress.
The histogram is plotting a fast trend of candle lengths, positive or negative.
It is an average of open-close cross using the triple-ema (TEMA) weighted against higher timeframes.
The calculation is similar to Know Sure Thing (KST), only using open-close (candle length).
Another TEMA average of the histogram produces a line that changes color from lime to grape.
The histogram is plotting a fast trend of candle lengths, positive or negative.
It is an average of open-close cross using the triple-ema (TEMA) weighted against higher timeframes.
The calculation is similar to Know Sure Thing (KST), only using open-close (candle length).
- Histogram below the centerline means candles are mostly down candles.
- Histogram often stays below centerline for 4-5 down spikes, then it makes its way back up through.
- Before each downtrend starts, there are these spikes (highlighted in yellow).
- In an uptrend, the last spike up appears to be the highest. Count them.
- In a downtrend, the first spike up is probably the highest.
- Bottoms will also show up the same way.
- Confirm using other indicators and price history.
Another TEMA average of the histogram produces a line that changes color from lime to grape.
- When the line is lime, and the price is not going up much (divergence), it indicates resistance.
- Conversely, when the line is grape, and the price is not going down much, it's a signal of support.
- A break or bounce off of support or resistance tends to follow the current longer-term trend, up or down.
- The line color does not mean the price will go up or down. It merely shows the candle length trend.
- Trends in candle length do seem to reveal or serve as a reminder of potential trend direction changes.
- During a flat or ranging trend, the line and price track each other well.
- During steep trends, up or down, the signals are not as reliable, but could be useful to spot weakness.
Комментарий:
As a matter of observation, it appears to be pivoting near 8k. It might take a few days to be sure, but closing shorts just in case.
As always, not investment advice. Do your own due diligence before placing a trade.