Trend-Setter Indicator

What it does is filter out the up/down patterns so that the trending action is highlighted (black custom candles). It then refilters the up/down action of the black CC so that higher TF trending action can be highlighted.

Optionally, you can activate 3a &/or 3b to show unfiltered 2xCC of the red CC.

The result is an indicator that disects the chart for trending action.


Set line graph to none and then select a line chart to get the indicator to look like this (2.55 KB)

Hello SwordOFManagement,

many thanks, looking forward to read more from you. Can you share abit more how do you create your CC? what are the criteria? Some of your posts, you use 3XCC which to me looks like grouping 3 candles/bars together, what is the logic behind the grouping and how do you use it in your trading?

Also in some of your posts, your trendlines are in 5 degress increment, how do you get 5 degress and why 5 degrees?

can you also explain more about space concept which you have posted ?

Looking forward to learn more from you

Best regards.


Hello SwordOFManagement,

I have followed your instructions, how do we interpret the chart? The black bars are showing uptrend and the red bars are showing the down trend?

attached is my chart with your indicator.

Please refer to the large color chart in post three :wink:

Boxes only print when there are 2 consecutively higher/lower closes.

The idea of space is to stretch the risk amount over as many trades as possible.

The trader will focus on a Position (think stop loss…for now) where he wants to be long/short from and then brings that price to within reach by reducing the initial position size.

The basic way to use space is to “buy” a 100% retracement and then rest the position behind a swing as price continues to fall.
Let us say that you bought a 100% ret that was 250 pips away for 2 lots (=5% risk) and price moves in your favor by 50 pips:
adding 1 lot at 300 space is (2/3) * 300 or a new position of 3 lots and 200 pips (=5% risk) from the current price; 300 pips is a 100% ret so you “set” a Position at the 66% retracement.
You would continue to add lots and move your position behind swings as well as use partial stops as your Position becomes too large to be hit.

3xCC is the method of comparing 3 like periods of time to look for clues as to what price might do next.

Although it looks like 3 period custom candles it is actually the underlying chart period as every close is accounted for.

3xCC is a discretionary trader’s playground but also a nightmare to the average trader.


EDIT: the higher partial stop should read -4 on a stop (12/8 = 50% more space)

Hello SwordOFManagement,

many thanks, i think i better concentrate on 1 at a time.

For the trendsetter, which is impt, the black outline box or the red box? How to read the trend is up or down? Do i need to show the original candles/bars or i should only look at your custom black box and red box? how do i use it to enter or exit a trade?

thank you for your patience.

best regards.


First let us play a game, it is called HIGHER THAN/LOWER THAN:

When you are trading based on closing prices this is all that really matters.

Black is the trend of the 5m chart and red is the trend of black.

The time frame is a variable because the CC are only plotted when the closing prices trend.

Tinypic is showing a girl in a dress for all of my uploaded pictures :17:


Hello SwordOFManagement,

can you upload a higher resolution picture? I cannot see it clearly.

Based on what i see,

Buy when the current black box closed higher than the previous black box with stop at the low of the previos black box vice versa for short.

am i on the right track?

best regards.


I apologize for the hazy picture guandi, I don’t know what is going on with tinypic.

The big question is if price is closing higher or lower than something.

If price can close higher than “something” and stay higher than that “something” then price must go higher.
It doesn’t matter if price gyrates or stalls above something; if price cannot close lower then it will move higher over time.

How many times have you said “oh no, price can’t go higher” or “look left, we are obviously at resistance” only to see price continue to trend higher? Again, If price cannot close lower than “something” then it will eventually go higher.

When should I buy?

This is really the wrong question to ask.

What you should ask is:

What is the idea behind going long/short?
Can I position myself on the chart at such a place where I can afford to wait?
How will I deal with the result be it good or bad?

What you want to do is manipulate your position size and space so that 2%(?) is lost only after your lots are reduced to 1 and your space falls to zero.
The survivability of EACH piece that you decide to risk is more important than ANYTHING else.
The second most important thing is maximizing your gains through additions which bring your position (some say stop) behind the price extremes.

…but when should I BUY?!

It really doesn’t matter, you are either going to lose what you were willing to lose or make what you set out to make; position, not entries, is everything.

As for TS, I do not consider the up/down patterns on the underlying chart.

Black is trending action of a small period and red is trending action of a larger period.

A chart is a chart, it has no meaning save the ideas that we force onto it.

Hello SwordOFManagement,
Now I am confused, aren’t we looking to see if there is a trend using TS and act on it? What is that “something” we should look for? A pivot, SR?

Thank you for your patience, looking forward to learn.

  • guandi

If price is closing higher then it must be closing higher than “something”. You might not know where exactly that something is but you can tell that it is there.

You might think that you are trading the chart but in fact you are not.

You are trading an idea encapsulated in a plan of attack to see it through.

Once you are in the trade it is just you and the plan, the chart just fades into the background.

That said, here are some technical things that you can use to trade:



Bredin is a brilliant coder as well as trader & this is what he had to say in regard to space:

Some of my posts from another forum:

Hello SwordOFManagement,

thank you for your answers, did i read it correctly?