# Traders' Tips from TASC Magazine

### Creating Multi-Colored Indicators in MetaStock

If an indicator can be displayed as a histogram, you can easily plot it with multiple colors using conditional statements. This allows you to specify different colors for different conditions. The following examples demonstrate how this is done with the MACD and the Volume, using MetaStock for Windows.

The first example shows you how to display the MACD as a multi-colored plot. The conditions are;

if today's MACD is greater than yesterday's, plot a green histogram, or if today's MACD is less than yesterday's, plot a red histogram. To create the formulas, choose the Indicator Builder from the Tools menu in MetaStock and enter the following formulas. Note: each formula needs to be added as a separate formula.

**Name:** MACD +**Formula:** If(MACD()>=Ref(MACD(),-1),MACD(),0)

**Name:** MACD -**Formula:** If(MACD()<Ref(MACD(),-1),MACD(),0)

**Name:** MACD Signal Line**Formula:** Mov(MACD(),9,E)

Then to display the indicators in MetaStock:

- Drag the MACD + from the Indicator QuickList to a new inner window.
- Double-click on it and change the style to a histogram and change the color to green.
- Next, drag the MACD - from the Indicator QuickList to the same inner window.
- Double-click on it and change the style to a histogram and change the color to red.
- Next, drag the MACD Signal Line into same inner window and change the color to black.

The conditions for the second example are;

today's volume is greater than yesterday's volume, or today's volume is less than yesterday's volume. Follow the same steps as above to create and plot the formulas.

**Name:** Volume +**Formula:** If(V>=Ref(V,-1),V,0)

**Name:** Volume -**Formula:** If(V<Ref(V,-1),V,0)

The conditions for the last example are;

today's volume is greater than its 10 day Moving Average, or today's volume is less than its 10 day Moving Average. Again, follow the steps from example one to create and plot the formulas.

**Name:** Moving Average Volume +**Formula:** If(V>=Mov(V,10,S),V,0)

**Name:** Moving Average Volume -**Formula:** If(V<Mov(V,10,S),V,0)

Use the above examples and modify them for your favorite indicator and preferred conditions to create your own multi-colored indicators.

### Contents

- Affine transformation
- Anticipating Moving Average Crossovers
- At Last! A Trend-Friendly Oscillator
- Average True Range or Standard Deviation
- Balance of Market Power
- Between Price and Volume
- Bollinger Band Targets
- BONUS ISSUE: Mutual Fund Screen
- Boosting Profitability - the AIM Indicator
- Breakout_Range2
- Bridging the Gap, Linking Point & Figure and Bar Charts
- Buff Up Your Moving Averages
- Bull and Bear Balance Indicator
- Candlestick Filtering
- Coding Candlesticks (II)
- Confirming the Price Trend
- Creating Multi-Colored Indicators in MetaStock
- Darvas-Style Trading and Something Darvas
- Deviation Oscillator
- Directional Breakout
- Ehlers Filters
- Elastic Volume Weighted Moving Average
- Finding Key Reversals
- Fisher Transform
- FVE - %b
- FVE - lin reg slope
- FVE - Storz's divergence
- FVE w/ linear regression slope
- High Low Strategy
- High Tech Mesa Adaptive Moving Averages
- Hilbert Indicators Tell You When to Trade
- Holding Overnight Positions
- Hot Zones
- How Smooth is Your Data Smoother
- Ichimoku Charts
- Index of Chart Sentiment
- Laguerre Filter
- Laguerre RSI
- MACD of Relative Strength
- Moving Average Crossovers
- Moving Average: Long on Talk, Sort on Action
- Normalization
- Now's The Time To Trade Crude
- Pivot point Strategy
- Profit with ETFs
- Quicken Your Averages
- Red-Green Strategy
- Refining the Hilbert Indicator
- Regularization
- Relative Performance Charting
- RSI Bands
- Squelch Those Whipsaws
- sRSI - Original
- sRSI - Using Wilders
- Stochastics
- Tandem Studies on Market Movement
- Targeting Your Pattern
- TC 2000 Scans
- The Average Peak Excursion
- The Cocked Gun Revisited
- The Inverse Fisher Transform
- The Self-Adjusting RSI
- The Truth about Volatility
- The Wilson Relative Price Channel
- Thrust Oscillator
- Trade Against the Gap
- Trade Into the Gap
- Trade the Swing Price
- Trend Continuation Factor
- Trend Quality Indicator
- Trend Trigger Factor
- TrendIV & Volume - Buy Signal
- TrendIV & Volume - Sell Signal
- Triggering Your Trading System
- Using Money Flow to Stay with the Trend
- Using Volume to Detect Shifts In Power
- Volatility System
- VWAP for Support and Resistance
- When and When not to Trade