Crayons — The Best of Trend Buddy and PAL in One Indicator
Crayons is a hybrid indicator taking the best of both worlds: the candle color trend system of Trend Buddy plus the dynamic S/R pivot levels of the PAL Tool. On top of those it generates its own price action signals (W, H, B markers). 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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