Trading Indicator Review and Enhancements

These flashcards summarize key concepts and definitions related to the trading indicator review and enhancements discussed in the chat.

First Pullback

The first significant price movement where a bar drops below the prior low in an uptrend or rises above a prior high in a downtrend, signaling the end of the previous price leg.

Implied Pullback

A bearish bar occurring in an uptrend or a bullish bar in a downtrend indicating potential weakness, but not confirmed as a regular pullback.

Breakout Bar

A bar that crosses the EMA after prior pullbacks are detected, indicating the start of a new trend.

Trend Identification

Determined by price relative to the EMA: above indicates an uptrend, below indicates a downtrend.

Trading Range Detection

Identified when price threads around the EMA, shows significant overlap, or low volatility based on ATR, indicating no clear trend.

Bar Color Coding

Bars are color-coded to clearly indicate market conditions: Breakout (Purple), Bullish Pullback (Red), Bearish Pullback (Green), Implied Bullish Pullback (Orange), Implied Bearish Pullback (Dark Yellow).

Reset Conditions

Conditions that cause the pullback tracking to reset, either when price continues the trend beyond the last pullback's high/low or reverses direction across the EMA.

Horizontal Rays

Visual indicators placed at pullback levels, which delete when price touches them or when trend resets.

Coloring Logic

Bar coloring is determined by the type of pullback or breakout detected, prioritizing pullback colors over breakouts.