Crayons — The Best of Trend Buddy and PAL in One Indicator
Crayons is a hybrid indicator that combines the candle color system of Trend Buddy with the price action signal capability of the PAL Tool. It simultaneously identifies trend state via candle colors AND generates price action signals (W, H, B markers) while drawing dynamic S/R levels. It is the most information-dense single indicator in the suite.
Lime Green: strong uptrend detected — enter long with the trend
Red: strong downtrend detected — enter short with the trend
Gray: no discernible trend — do not trade directionally in gray candle periods
Orange: bearish pivot — use candle high/low as S/R; take profit on longs
Yellow: bullish exhaustion — buyers drying up; potential reversal or profit-taking zone
Turquoise: bearish exhaustion — sellers drying up; potential reversal or addition zone
Dark Green: bullish breakout in one candle; Purple: bearish breakdown in one candle
Lesson
Crayons Special Signals — W, H, and B Markers
In addition to the candle color system, Crayons paints three special markers: W (rejection from upside), H (potential local top), and B (confirmed reversal). The B signal is the most powerful — it represents a confirmed reversal with high probability of continuation. Combined with dynamic S/R levels, Crayons allows simultaneous identification of trend state, S/R flips, and entry triggers.
W marker: rejection from upside — potential profit taking on counter-trend longs; watch for reversal
H marker: potential local top — not a confirmed reversal but a warning to tighten stops or reduce size
B marker: confirmed reversal — high probability of continuation in the new direction; best Crayons entry trigger
Levels input: Crayons draws dynamic S/R pivots from key formations — visible in real time as they develop
S/R flip visible live: a level transitions from resistance to support on the chart as it happens
Best combination: Crayons B signal at a pre-identified DBS zone = Crayons confirms the LTE setup
Same no-standalone rule applies: Crayons is powerful as confluence; always pair with TA S/R levels
Check Yourself
On a Crayons chart, a sequence of Lime Green candles transitions to an Orange candle. What does the Orange candle signal and what action should a long position holder take?
Orange = Bearish Pivot — the candle high/low becomes a local S/R level; take profit on longs at minimum, tighten trailing stop, or reduce position size; do not add new longs at an Orange candle
Orange = Bullish Momentum signal — after a sequence of Lime Green candles, an Orange candle means the trend is accelerating and new long positions should be added at the Orange candle's close
Orange = Trend reversal — Orange immediately signals the uptrend is over and shorts should be entered at the candle close with a stop above the candle high
Answer it (with a live chart) in the interactive lesson.
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