In the new MC 4 beta has been introduced the Hollow CandleStick, as described the rules for Hollow Candlestick coloring and filling are as follows:
The color of bars depends on the relation of Close for the previous bar (c1) and the current bar (c2):
If c1<c2, the lines are colored ‘up’ (e.g. green)
If c1=c2, the lines are colored ‘neutral’ (e.g. grey)
If c1>c2, the lines are colored ‘down’ (e.g. red)
Whether the bars are filled or remain hollow depends on the relation of Open and Close of the current bar:
If Open < Close, the candlesticks will be hollow
If Open > Close, the candlesticks are colored ‘up’, ‘down’, or ‘neutral’
If Open = Close, the candlesticks look like a horizontal line
While I do agree on the bars coloring rules, I don't agree for the filling rules. For me the filling color should confirm the trend as following:
If Open<Close Then begin
If line=green then fill green, I'm confirming the up move
If line=red then don't fill, I'm not confirming the down move
end
If Open>Close Then begin
If line=green then don't fill, I'm not confirming the up move
If line=red then fill red, I'm confirming the down move
end
Kind Regards,
Danilo
Hollow Candlestick proposal
- Marina Pashkova
- Posts: 2758
- Joined: 27 Jul 2007
Hi Marina,
I live in Milan, Italy, in the center of the city there is a beautiful gallery, on the gallery's floor there is a mosaic with the drawing of a bull. The tradition say that bring good luck crushing the balls of the bull, and so every year thousands of tourists are photographing while crushing the balls of the bull, it does makes sense? No but is the tradition. Now instead of balls of the bull there is a large hole that had become increasingly profound...
Regards,
Danilo
I live in Milan, Italy, in the center of the city there is a beautiful gallery, on the gallery's floor there is a mosaic with the drawing of a bull. The tradition say that bring good luck crushing the balls of the bull, and so every year thousands of tourists are photographing while crushing the balls of the bull, it does makes sense? No but is the tradition. Now instead of balls of the bull there is a large hole that had become increasingly profound...
Regards,
Danilo
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- Posts: 407
- Joined: 01 Jan 2008
- Been thanked: 3 times
- TJ
- Posts: 7742
- Joined: 29 Aug 2006
- Location: Global Citizen
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i don't use candles....
but if the new feature is user-configurable, i am all for it.
i mean it is not a fixed "danilo-method", but user assignable color/solid/hollow parameters so that when a "NEW" coloring method is invented, the user can paint the bars to his content.
because a more flexible MC is a more powerful MC... is a more attractive MC
in the end, more people will user MC, and our MC will have more support.
if the MC code is structured properly from the onset... i don't think this is difficult to add.
thank you MC for considering..
but if the new feature is user-configurable, i am all for it.
i mean it is not a fixed "danilo-method", but user assignable color/solid/hollow parameters so that when a "NEW" coloring method is invented, the user can paint the bars to his content.
because a more flexible MC is a more powerful MC... is a more attractive MC
in the end, more people will user MC, and our MC will have more support.
if the MC code is structured properly from the onset... i don't think this is difficult to add.
thank you MC for considering..
-
- Posts: 407
- Joined: 01 Jan 2008
- Been thanked: 3 times
Marina,
In the book: "Candlestick and pivot point trading triggers", by John L. Person. Published by John Wiley & Sons, Inc., 2007.
I have found the following description (pages 188-189):
"The components of a candlestick are derived from the open, the high, the low, and the close. In [...] we see a dark candle (in a color charting software package, it would be a red candle). This signifies that this particular time period’s close is below the open. It does not indicate whether the market closed higher or lower than the previous time period did. The computer code for this sequence would be C < O, the close is less than the open. We can also assign a negative (-) value or reading to help determine the relative strength of a trend.
In [...], the white, or hollow, candle signifies that the concluded time period shows that the close is above the open (in a charting software package, you would universally see this as a green candle). Keep in mind that you can adjust almost any parameter in any software package to your liking. Therefore, you may want the candle to be white. The point is that the color of a 'lower close than open' candle should be different from the color of the 'higher close than open' candle. The computer code for this sequence would be C > O, the close is greater than the open. We can also assign a positive (+) value or reading to help determine the relative strength of a trend by how many more positive, or 'higher close than open', candles exist".
I have blue colored the main sentences:
1) "It does not indicate whether the market closed higher or lower than the previous time period did". There isn't a standard the define a color sequence depending on the previous close, and I'm happy that MC made a step forward to try to define such dependence.
2) "Keep in mind that you can adjust almost any parameter in any software package to your liking". For me ad example: hollow, white and green have all the same meaning, my proposal was an attempt to implement the new dependence concept (c1 <=> c2) with the standard candlestick coloring (fill green/red to confirm a bullish/bearish candle), anyway as already asked by others should be better give the option to adjust almost any candlestick parameter.
Regards,
Danilo
P.S:
Consider that once the candles was hand-drawn on a paper's sheet and for drawing a white candle was enough to draw a hollow rectangle, but what happens if the paper's background is black or blue ?
In the book: "Candlestick and pivot point trading triggers", by John L. Person. Published by John Wiley & Sons, Inc., 2007.
I have found the following description (pages 188-189):
"The components of a candlestick are derived from the open, the high, the low, and the close. In [...] we see a dark candle (in a color charting software package, it would be a red candle). This signifies that this particular time period’s close is below the open. It does not indicate whether the market closed higher or lower than the previous time period did. The computer code for this sequence would be C < O, the close is less than the open. We can also assign a negative (-) value or reading to help determine the relative strength of a trend.
In [...], the white, or hollow, candle signifies that the concluded time period shows that the close is above the open (in a charting software package, you would universally see this as a green candle). Keep in mind that you can adjust almost any parameter in any software package to your liking. Therefore, you may want the candle to be white. The point is that the color of a 'lower close than open' candle should be different from the color of the 'higher close than open' candle. The computer code for this sequence would be C > O, the close is greater than the open. We can also assign a positive (+) value or reading to help determine the relative strength of a trend by how many more positive, or 'higher close than open', candles exist".
I have blue colored the main sentences:
1) "It does not indicate whether the market closed higher or lower than the previous time period did". There isn't a standard the define a color sequence depending on the previous close, and I'm happy that MC made a step forward to try to define such dependence.
2) "Keep in mind that you can adjust almost any parameter in any software package to your liking". For me ad example: hollow, white and green have all the same meaning, my proposal was an attempt to implement the new dependence concept (c1 <=> c2) with the standard candlestick coloring (fill green/red to confirm a bullish/bearish candle), anyway as already asked by others should be better give the option to adjust almost any candlestick parameter.
Regards,
Danilo
P.S:
Consider that once the candles was hand-drawn on a paper's sheet and for drawing a white candle was enough to draw a hollow rectangle, but what happens if the paper's background is black or blue ?
Marina,
I reflected on this issue and I would propose to use a single type of candles having the opportunity to set the following parameters:
1) If (c1 < c2) & (Open <= Close) the lines are colored "up" (eg. green) and the candle "up"
2) If (c1 < c2) & (Open >= Close) the lines are colored "up" (eg. green) and the candle "weak-down" (eg. light-red)
3) If (c1 > c2) & (Open >= Close) the lines are colored "down" (eg. red) and the candle "down"
4) If (c1 > c2) & (Open <= Close) the lines are colored "down" (eg. red) and the candle "weak-up" (eg. light-green)
5) If (c1 = c2) the lines are colored "neutral" (eg. grey)
Given the above ruels it's possible define the standard candle in the following way:
1) If (c1 < c2) & (Open <= Close) the lines are colored "grey" and the candle "green"
2) If (c1 < c2) & (Open >= Close) the lines are colored "grey" and the candle "red"
3) If (c1 > c2) & (Open >= Close) the lines are colored "grey" and the candle "red"
4) If (c1 > c2) & (Open <= Close) the lines are colored "grey" and the candle "green"
5) If (c1 = c2) the lines are colored "grey"
Given the above ruels it's also possible define the hollow candle in the following way:
1) If (c1 < c2) & (Open <= Close) the lines are colored "green" and the candle "hollow"
2) If (c1 < c2) & (Open >= Close) the lines are colored "green" and the candle "green"
3) If (c1 > c2) & (Open >= Close) the lines are colored "red" and the candle "red"
4) If (c1 > c2) & (Open <= Close) the lines are colored "red" and the candle "hollow"
5) If (c1 = c2) the lines are colored "grey"
Kind Regards,
Danilo
P.S.:
(*) when Open=Close the candle's color is not visible since will be drawn a cross
(**) the "hollow" color as the meaning of window's background color
I reflected on this issue and I would propose to use a single type of candles having the opportunity to set the following parameters:
1) If (c1 < c2) & (Open <= Close) the lines are colored "up" (eg. green) and the candle "up"
2) If (c1 < c2) & (Open >= Close) the lines are colored "up" (eg. green) and the candle "weak-down" (eg. light-red)
3) If (c1 > c2) & (Open >= Close) the lines are colored "down" (eg. red) and the candle "down"
4) If (c1 > c2) & (Open <= Close) the lines are colored "down" (eg. red) and the candle "weak-up" (eg. light-green)
5) If (c1 = c2) the lines are colored "neutral" (eg. grey)
Given the above ruels it's possible define the standard candle in the following way:
1) If (c1 < c2) & (Open <= Close) the lines are colored "grey" and the candle "green"
2) If (c1 < c2) & (Open >= Close) the lines are colored "grey" and the candle "red"
3) If (c1 > c2) & (Open >= Close) the lines are colored "grey" and the candle "red"
4) If (c1 > c2) & (Open <= Close) the lines are colored "grey" and the candle "green"
5) If (c1 = c2) the lines are colored "grey"
Given the above ruels it's also possible define the hollow candle in the following way:
1) If (c1 < c2) & (Open <= Close) the lines are colored "green" and the candle "hollow"
2) If (c1 < c2) & (Open >= Close) the lines are colored "green" and the candle "green"
3) If (c1 > c2) & (Open >= Close) the lines are colored "red" and the candle "red"
4) If (c1 > c2) & (Open <= Close) the lines are colored "red" and the candle "hollow"
5) If (c1 = c2) the lines are colored "grey"
Kind Regards,
Danilo
P.S.:
(*) when Open=Close the candle's color is not visible since will be drawn a cross
(**) the "hollow" color as the meaning of window's background color