How to Use It
What this tool does
This Algo highlights candles and prints multi-timeframe (MTF) labels based on a volume-evaluation system. It does not predict direction by itself; it ranks how meaningful a bullish or bearish candle is based on internal volume/participation criteria.
Think of it as a “signal quality / conviction overlay” that helps you:
- spot high-quality bullish/bearish impulses,
- confirm alignment across timeframes,
- avoid low-quality noise.
Quick start
- Add the indicator to your chart (overlay).
- Turn on Color Candles by System (Display).
- Choose your Volume Strategy:
- Pure Scalping = more signals, faster sensitivity
- Scalping with Trend = fewer signals, higher selectivity
- Pick your Multi-Timeframe Trend Analysis Mode (Strategy Selector).
- Enable MTF Mode = Dual (recommended) so you see:
- a Developing (faded) label while a higher-TF candle is building
- a Confirmed (solid) label when the higher-TF candle closes
Reading the candle colors (the only thing you need)
Each colored candle falls into a Bull ladder or Bear ladder, from strongest (5/5) to weakest (1/5). These are the default colors (users can customize them in settings).
Bull ladder (highest → lowest)
- Bull 5/5 = dark navy (strongest bullish conviction)
- Bull 4/5 = lavender / purple
- Bull 3/5 = bright blue
- Bull 2/5 = cyan / aqua
- Bull 1/5 = light cyan (weakest bullish signal)
Bear ladder (highest → lowest)
- Bear 5/5 = silver (strongest bearish conviction)
- Bear 4/5 = burgundy / maroon
- Bear 3/5 = bright orange
- Bear 2/5 = gold / yellow
- Bear 1/5 = pale gold / khaki (weakest bearish signal)
Interpretation rule (simple):
The closer you are to 5/5, the more you treat it as “institutional-grade participation.”
The closer you are to 1/5, the more you treat it as “informational / early / lower-confidence.”
MTF Labels (what they mean)
MTF labels are designed to match the candle system exactly:
- Label color = the same bucket color the candle would be if you were looking at that higher timeframe.
- Label text = a short title like STF / LTF / ITF-1 / ITF-2 / HITF / HTF, etc. (based on your configured timeframes).
- Label position:
- Bullish labels print below price
- Bearish labels print above price
Dual mode behavior (recommended)
You’ll see two “states”:
- Developing label (faded)
Means the higher timeframe candle is currently building into a qualified signal.
This can change as the candle evolves. - Confirmed label (solid)
Means the higher timeframe candle closed as a qualified signal.
This does not repaint.
Trading use:
- Developing = “heads up, watch closely”
- Confirmed = “this candle officially qualifies”
How to use the Strategy Selector (MTF configuration)
This controls which timeframes the algorithm uses for MTF labels/analysis:
- Ultra-Dual (Scalping): LTF + STF
Best for very fast execution and microstructure. - Dual: ITF-1 + LTF
Best for quick momentum confirmation. - Triple (Default): ITF-2 + ITF-1 + LTF
Best balanced configuration for most intraday traders. - Quad: HITF + ITF-2 + ITF-1 + LTF
Adds higher confirmation. - Quint: HTF + HITF + ITF-2 + ITF-1 + LTF
Best for macro-to-micro alignment.
Practical trading workflow (no “secret logic,” just application)
A) Trend-aligned entries
- Identify bias from higher timeframes (HITF/HTF labels).
- Wait for a bullish (or bearish) signal on your execution timeframe (LTF/STF).
- Prefer signals that are:
- higher on the ladder (4/5–5/5), and/or
- aligned across multiple timeframes.
B) Reversal / exhaustion awareness
When you see a very high-rank signal (5/5) against the prevailing trend, treat it as:
- a potential warning,
- a “pause / reaction zone,”
- or a prompt to reduce size / tighten risk.
(You still confirm with structure/levels; this tool is the alert, not the entry by itself.)
C) Risk management rule of thumb
- Higher-rank signals can justify more patience and wider structure-based stops.
- Lower-rank signals should be treated as tighter, faster, smaller trades.
Settings you’ll actually adjust
- Volume Strategy: Pure Scalping vs Scalping with Trend
- Show MTF Labels: On/Off
- MTF Mode: Live / Confirmed / Dual
- Developing Transparency: how faded the developing label is
- Label Offset (points): push labels away from candles so they don’t overlap
- Signal Colors (Weights): users can customize colors but the meaning stays the same ladder
What “good” looks like (mental model)
- Best: Confirmed HTF/HITF signal + strong LTF signal in same direction
- Good: ITF alignment + medium/strong LTF execution candle
- Okay: single low-rank signal (1/5–2/5) = informational, not a “must trade”