This works in the same way as John's 10x Bars Indicator. To get in on more, bigger, and faster setups, use the Power Bars in the same way he does with the 10x.
Know whether to search for explosive purchase setups, implosion sell setups, or to avoid 'fake out' congestion zones when looking for buy setups. Also, recognize when volume is at least 50% above average to spot moves with a chance to hit a home run.
WHAT IT DOES
The ADX and DMI are used to calculate the trend quality and strength, while Power Bars are used to quickly grasp the trend quality and strength.
The Power Bars take the computation that we would typically have to have as a separate set of indicators and puts it immediately on your charts, making decision-making easier.
The Power Bars are a good addition to the Squeeze since they may be used as confirmation to stay in a moving chart or as an early warning to exit.
HOW TO USE IT
Based on the underlying calculation of the ADX and DMI indicators, the Power bars will plot green, yellow, or red.
- Green bars suggest that there is a strong upward tendency.
- Reb bars show conviction and a downward tendency.
- Yellow bars show - no strong directional conviction.
- Bars with a dot represent volume that is 50% more than usual for that timeframe, showing a stronger belief in the trend.
We want to either avoid yellow bar setups or trade them in a non-directional manner until we have directional conviction. We want to trade in the direction of the Power Bars since it gives us the biggest chance of winning.
HISTORY & CREDITS
This indicator has been inspired by John Carter's from Simpler Trading 10x indicator. We have upgraded the script and believe that it definetly deserves the 10x Pro status. We call it Power Bars and love to see what you can do with it. Here is link to John's trades using the 10x.
After you have purchased the indicator have to send us your TradingView username in order to get access.
Please send us an email and we will send you over a link where you can download the file.
After payment is made, access to the script will be given within 2 hours
Link to TradingView script