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Alpha Bars? I use another paintbar study, which I call Auction Bars. It is a modified version of the the Thrust Bars, which I have posted, with slightly different color settings.
Paint Bar Study: Thrust Bars
A thrust bar is an upclosing (Close[0]> Open [0]) bar with a close above the high of the prior bar (Close[0]>High[1]) or a downclosing bar (Close[0]< Open [0]) with a close below the low of the prior bar (Close[0]<Low[1]).
Paint Bar Study: Auction Bars
Auction Bars is another paint bar study based on thrust bars with the following definitions:
Small Body Bars: Bars with a body smaller than 0.3 x average true range (ATR period 14)
Thrust Bars: Thrust Bars as defined above which are neither smaller body bars nor showing a reversal of price action (upthrusting bar must close in the upper half of their range, downthrusting bar in the lower half of their range)
Auction Bars: An auction bar is a thrust bar with some additional characteristics necessary to show that a shift in perceived value occured
- It must have minimum range of 0.7 x average true range (ATR period 14)
- If there is an active trading range defined by an expansion bar, the auction bar must close above the high or below the low of this trading range by a margin which depends on the width of the trading range and the tick size.
Reversal Bars: Bars with a range exceeding the average true range which either have an open and close in the upper third of their range (reversal up) or an open and close in the lower third of their range (reversal down). Additional criteria apply for the value of Close - Open.
This study is work-in-progress as I occasionally modify some of the conditions.
The chart below shows how I currently use them.
1) Auction Bars up (lime) producing an uphisft in value
2) Large Auction Bar down (orange-red) establishes a trading range for the day
3) Bar closes inside the range of the prior bar (gray)
4) Not a thrust bar, because it reverses, not a reversal bar, because its relative range is too small*) (gray)
5) Inside close bar (gray)
6) Small body bar (white)
7) Upthrusting bar (black), no auction bar as contained within the larger range
8) Reversal bar just below resistance (yellow)
9) Small body bar (white)
10) Upthrusting bar (black), no auction bar as contained within the larger range
11) 2 small body bars at resistance
*) can be debated, whether the range is too small, maybe should take a longer lookback period for the ATR
