Works mostly in BTC and top 10 alts on higher time frames
Green - Uptrend sequence detected. you can use the first green bar after any other color as a potential entry signal bar. The thinking behind this is, suppose you looked at a glorious trend with a dozen green bars in a row – ideally, you’d want to get long on the first one right? So while you cannot predict how long a trend will run, the first bar of any new color is a good place to look for an entry.
The next step is, Green (and red) by design are programmed to uncover trends. Of course, not all markets trend all the time. One way to increase the odds of a “good” trend is if the next new bar (or two) goes above the first green bar - then odds are better trend continues. In effect, this means the first new green after any other color is a setup bar, and follow through after that is a potential entry. This entry method reduces the likelihood of being stopped out, compared to just entering on the close of the first green bar. If there is a green bar and the next 1-3 have zero follow through, disregard.
Red - The opposite of green - trend is down, same premises apply
Blue - Unconfirmed reversal. In a strong uptrend, this is a high risk entry but offers the earliest possible entry, often within 1 bar of the low. The reason a blue is labeled as “unconfirmed” is that it represents the earliest evidence of a reversal from a downtrend, but not enough evidence overall to state that the actual trend has changed from down, to neutral, or to up. In subsequent bars, if there is follow through, the blue bar is confirmed --> this will will plot CR under the confirmation bar. This suggests that the lows around the blue bar are tradable for some duration of bounce (usually 3-12 bars).
If the reversal sequence is not going correctly or we get new data that changes the odds of a confirmed reversal following through, you get an “x”, which tells you either to expect a failure, or move up a stop, or both. A “z” effectively cancels the “x”, in that the reversal sequence is once again going as expected
Orange Pivot - This is labeled with a “P”. Orange pivots are useful for two things - as a profit taking marker in an uptrend, and a showing a pivot zone - meaning you can take the high and low of the pivot bar and treat it like a support / resistance level that if it breaks, should lead to a move in the direction of the break.
Often times in a strong uptrend you’ll get an orange pivot where the low of that bar marks a support, there is some sideways action for 1-4 bars, then the pivot range breaks up. Other times, it breaks down and offers a good stop out point in managing uptrend. Here is an example where the Pivots marked a range, then broke up.
Gray - Neutral, no definable trend sequence
Purple and Yellow: Breakdown and Breakout, respectively. It’s rare for the trend to change from down straight to up (and vice versa) in one bar without passing through neutral first. For this reason, they are marked as purple and yellow, respectively. These are often “big” bars and make it difficult to get a low risk entry since the distance to stop is so wide. For this reason, it may be better to enter later.
Fuchsia Pivot - This is labeled with a “P”. Can be “bullish” or “bearish” and treat the same as other pivots, described above.
You can paste the script from below link in pine script editor and save it. It can be used as an indicator later from ‘Indicators’ -> ‘My Scripts’ section.