In this case we calculate the bear and the bull candles based on the next criteria :
Bull candle : ((CLOSE - LOW ) + (HIGH -OPEN) / 2 ) / Candle length
Bear candle: ((HIGH - CLOSE ) + (OPEN-LOW ) / 2 ) / Candle length
Once we have the candle we use moving average to smooth the process, and then we calculate the differece between the bull ma and bear ma.
The result is going to be our histogram.
Once we have the histogram we can start setting up rules for entries and exit.
If you have any question, please let me know!
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