Arithmetic Candles / Cumulative delta

In this example the Arithmetic candles will be combined with the Cumulative Delta, also as a twist the confirmation expo is used to maximise the value from the Arithmetic candlesticks.

The general concept

The arithmetic candlesticks and the cumulative delta are two very popular indicators in the Zeiierman community. The arithmetic candlesticks are great for following trends and getting in on the right moments, though by combining the Confirmation expo it is even possible to find some great reversals.

The example

In the picture below is an example of this setup. Here we can see the different indicators combined usage and the way they can display a potential reversal zone.

• First the Arithmetic candlesticks color change speaks for itself, the change of color might indicate a change in direction

• Then to strengthen the information gathered from the Arithmetic candlesticks the Confirmation expo is used with the Arithmetic candles as input (settings are shown below). By doing this the arithmetic candles can indicate a more numerical way of trend strength compared to the regular display of red and green candles. This makes it more viable to measure the trend strength in certain areas

• The cumulative delta is an extra measurement tool to indicate the true strength of price. As shown in the examples below if the cumulative delta start to move up but price is still hovering in place this can indicate that a certain strength towards that particular direction is building. And thus can this give an early signal before starts to actually move into that direction

• (Bonus) All setups have a higher probability of success if they occur on the key levels and/or in zones where based on overall analysis a long or short would be in place. If you take all the setups you will have a higher trade frequency but the overall winrate may be lower, so take this into consideration when backtesting setup scenarios.

Settings

All indicators except for the Confirmation expo are being used with default settings. The settings from the Confirmation expo are shown below.

Disclaimer: This content is not financial advice and is for educational and entertainment purposes only.