Hello and welcome to this very exciting software update announcement. In this post, we are introducing an entirely new type of indicator to the platform called GoNoGo Trend®.
The GoNoGo Trend® was developed by our friends at GoNoGoCharts.com. When you first glance at this indicator, you’ll immediately see that it’s different. There are no lines on the chart. There are no levels. The price bars are colored differently, and the colors do not correspond to the candles opening or closing prices in any way. To help you understand why this indicator is designed this way, please read the mission statement from GoNoGo Charts here:
Many traders and investors are overwhelmed by the often redundant, occasionally contradictory, and ever-complicated battery of indicators. GoNoGo Charts help investors understand the direction and continuity of price trends for any security, any asset class, across any time frame. By blending objective principles of technical analysis and the most widely used statistical measures, GoNoGo Charts remove “indicator overload.” Investors remain focused on what matters most – price – while colors of each bar or candle reflect the strength of the trend.
In other words, the GoNoGo Trends indicator “blends robust statistical tools into a simple color-coded bar chart of a security’s price according to the strength of its trend.”
This is important for two reasons:
- It does not clutter your chart with numerous lines and markings. Instead, it simply colors candles, or price bars, in a specific way.
- The coloring is based on multiple factors which, when used together, can offer more confirmation of a trend than any individual indicator can.
When we first came across GoNoGo, we were immediately drawn to it for these reasons. It’s just simple. Anyone who can remember what the five colors mean can use this indicator.
Fascinating, right? This is the first indicator that we have come across that actively reduces the noise on your charts. Most indicators add lines, levels, annotations, and labels, which clutter your screen and visually distract your eyes. Not this one.
How does it work?
Without revealing the specific secret sauce, we can say that this indicator is the sum of a half-dozen other indicators that are commonly used by traders. Based on how these various other indicators read, the GoNoGo Trend® adjusts the colors of the candles on your chart. The end result is a beautiful, easy-to-understand view of the trend itself.
What do the colors represent?
Each candle is colored differently. The relative position of the opening and closing prices do not impact the color of the candle nor does the position of the current candle in relation to the previous candle.
Instead, the colors are sourced from the ‘secret sauce’ indicators. Below, you’ll see an explanation of what each color represents, trend-wise, as well as a layout of each color on the chart:
|Blue||Strong Go||Strong bullish trend|
|Aqua||Weak Go||Moderately bullish trend|
|Amber||Go Fish (No Trend)||Neutral|
|Pink||Weak No Go||Moderately bearish trend|
|Purple||Strong No Go||Strong bearish trend|
What about Raindrop candles?
The GoNoGo Trend® can be used with the Raindrop Charts(r), as well as other chart types such as Heiken Ashi, but it is important to understand one very subtle, yet powerful difference between how it will present in comparison to when using standard OHLC candles. TrendSpider computes indicators with the price bars on your screen. Other platforms always compute indicators with OHLC candles. Therein, on Raindrop Charts, which are volume-weighted, all of the individual ‘secret sauce’ indicators that go into the GoNoGo indicator will be as well. This is also true when using Heikin Ashi candles, as they, too, are calculated differently than standard OHLC candles. You will not see this level of detail on any other platform, we assure you!
See It in Action – Presented by the GoNoGo Team
In this video, Alex Cole and Tyler Wood, the brains behind GoNoGo Charts, will explain what you’re looking at and how to read it.
Learn more about how to trade using the GoNoGo Trend® Indicator.