GRaB Candles Short Indicator

GRaB Candles Short Indicator

GRaB Candles Short is an ideal trend identifier enabling traders to open long or short positions.

Can you guess what GRaB Candles Short mean? Well, here we go; green, red, and blue candles. These color codes are what the indicators use to give buy and sell signals. Besides the color-changing candles, the repainting indicator also consists of three bands of channels that help the traders determine the price direction.

GRaB is a repainting technical tool suitable for short-term trading to detect the price momentum. It works well in a one-minute time frame, although the high price fluctuations make it hard to analyze the price movement. Therefore, the indicator is suitable for short-term trading strategies in short time frames. That said, you can use the indicator to trade any instrument.

How to Use the Indicator
As mentioned, the indicator uses different candlestick colors and a three-layered band to determine the existing trend. The candlestick changes its color to blue, red on blue (white). The idea is to wait for the candle to change color and the bands to change direction.

Buy Signal
The indicator gives a buy signal when the candlestick changes color to green. The channel bands must also be in an upward trend. Also, the price action should trend above the channel band.

When the candlestick color changes to red, it indicates the bears are in market control. The channel band changes direction to downward movement with the price crossing line from above, and the price action starts moving below the bands.

GRaB Candles Short Trading Example

The price action chart shows the behavior of the GRaB indicator in a five-minute time frame. During the short rally, you can notice that the chart posted empty green bars. The white-filled bars are an indication of a neutral market. In this case, you will want to stay out because there is no clear trend.

Now, the market reaches a point where the indicator gives a downtrend signal. The indicator bands start sloping downwards, indicating an increasing bearish momentum. The uninterrupted steep slope above the price action also acts as a resistance level. During a strong trend, the price stays below the indicator bands.

The indicator also posts red candlesticks, indicating selling pressure. The end of the trend occurs when the bands change direction and start heading upwards, and the indicator candlesticks change color from red to green.

Conclusion
The GRaB is a two-in-one indicator that uses two factors to give trading signals. Ideally, you should wait for the candle to change color to green before you open a long position. In addition, the indicator three bands should be upward, signifying a bullish trend. The price should also pierce the indicator band from below, meaning the price action should be above the indicator bands. On the other hand, downward sloping bands and red candles give a signal to open a short position. This is an excellent indicator for trend trading and should be part of your trading tools.