Candle color block - This block is a "conditional block" that is triggered based on the size, succession and color of the candles. For example, you can detect a large red candle or a succession of small green candles.
In the parameters of the block you can select the unit of time you want to study, the color, the minimum size as well as the successive number of candles you want to wait before moving on.
Time unit: Here you choose the time unit that will be used to analyze the candles and to detect the color and size.
Candle color: Here you choose the color of the candle(s) that will trigger the block. It can be red or green.
Note : The color of the candle is determined at its closing.
Minimum threshold: Here you define the minimum size of the candle(s) that will trigger the block. The size of a candle is calculated using its open and close.
Note : The size of the candle is determined at the closing of the candle. If the parameter "number of successions" is set to more than 1, all candles must have the same color and be larger than the minimum size.
Number of successions: Here you define how many times the candles should be of the defined color and size. For example, if you choose to detect a succession of 4 "Red" candles, then 4 successive red candles will trigger the block.
Counting successions by Including the past or Ignoring the past allows you to take into account (or not) the previous candles for the validation of the block at its initialization.
Example: Let's suppose that you set up a block to detect a succession of 4 "Red" candles of 1h; that the strategy arrives on this block at 5h30 and that it detects a red candle at the close (at 6h).
if this candle is preceded by 3 successive red candles (3h, 4h and 5h) then :
- the block configured for 'Include the past' will be triggered because it detects 4 successive red candles (at 3h, 4h, 5h and 6h).
- the block configured for 'Ignore the past' will not be triggered because it is waiting for 4 successive red candles from now on (it will have detected only one at 6 o'clock for the moment).
Behavior at initialization: Here you can define the behavior of the block at its initialization. You can either wait for the current candle to close (option "Wait for next close"), or instantly evaluate the block conditions on the last closed candle (option "Evaluate immediately"). This last option is particularly useful to perform analysis on several time units in parallel or to analyze an indicator on a macroscopic time unit (12H / Daily / Weekly...) without blocking the strategy by waiting for a candle to close.
This block can be used to confirm a trend (e.g. 3 large green candles in a row) or to take a position. Try to use it with the support/resistance or price blocks to identify breakouts and avoid false positives!