This indicator looks superb

Hi Guys,

I came across this free indicator on some website (been swamped by junk mail ever since).

I've been looking back to see how well this could perform and to be fair it appears to be fantastic for picking up the big moves on the h4.

I know its based on price action however does anybody know the easiest way to find out how it works as in how to strip an indicator to see what parameters it looks for to give off the signals?

Ive attached it - many might find it useful in general. I use it in my daily trading as one of my edges

The basics of the system associated with it are red candles mean sell yellows mean buy - thats the basic principle of it. Im just curious because if this indicator is taken apart and worked out there could be basis in there for a very profitable system.

I been having this indicator on the shelf for quite some time, really never used it, actually i had forgot about it, only 2 settings for it, Intensity and Period. It is another free indicator by Karl Dittman.
I just put it on my charts and will test it, seems to be giving me the same signal as my other indicators therefore looks promising.

Manual says if you have an uptrend and get a sell signal ignore the signal and open buy trade, visa versa for downtrend, therefore it could be a little deceiving but i will continue to monitor it and compare it with my other indicators.

Good Luck

Great stuff. It does look good - ive been using it as an entry indicator on the h4. if i get the yellow i buy as long as MF agrees with it then my tp is the next pivot .

Im on month 2 of doing this and 8.5% up last month i took 17.5%

Ive uploaded the trades im taking to my profile so feel free to follow (Although the % is differnt here to what myfxbook says. Hmmm.

Thanks for replying by the way - im pretty new here so looking forward to getting involved.

can u give a link to the original arcticle about this indi

Here's the PDF manual that comes with the indicator.

One thing to note as I did try the system and made some pretty bad losses. On the smaller timeframes it CAN work but waiting for the next coloured candle as you exit strategy doesn't work so well. It just looses most of the profits.....

It is a great indicator for price moves though.