A simple indicator that shows volume expansion and contraction of a trend through colorization of the candles. It indicates the underlying volume support of a trend. This indicator might come in handy for any Elliott Wave analyst trying to incorporate volume into his analysis.
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Some pointers on how to use this indicator. Consecutive red candles indicate that the trend is strong (both up or down). In a trending market blue candles should always be corrective. In lower degree a corrective structure should be visible within those blue candles. This indicates a healthy trend and there is a higher probability that the higher degree trend is likely to continue.
But when a market trends with consecutive blue candles, that could be interpreted as a sign of weakness.This could also be a fake out or a squeeze.