Poly candle

前天

Analysis of the "Poly Candle" Indicator for Predicting Candles on Polymarket

The "Poly Candle" indicator is designed to analyze market patterns and predict the direction of the next candle on the Polymarket platform. It uses a complex combination of divergences, low-timeframe filters, and cross-asset checks to generate visual signals about probable price movement.

1. Divergences (Divergence Filter)

What it is: The indicator detects discrepancies between price and a set of technical indicators (MACD, RSI, Stochastic, Momentum, CCI, OBV, VWMACD, CMF, MFI).

Purpose: When the price forms a new high/low, but the indicator does not, this signals a potential slowdown or trend reversal.

Types of divergences:

Regular: Predicts a possible reversal of the candle (bullish or bearish).

Hidden: Confirms the continuation of the current trend and helps clarify the direction of the next candle.

Divergences are based on pivots (local highs and lows), which allow precise identification of points where a candle might change direction.

2. RSI Filter on Lower Timeframes

Function: Checks short-term momentum using RSI on a lower timeframe (e.g., 1-minute) within the current candle.

Why it matters: A divergence on a higher timeframe alone is weak — the lower timeframe checks if RSI aligns with price:

Bullish candle: RSI rises, price forms a local minimum.

Bearish candle: RSI falls, price forms a local maximum.

Effect: Confirms the likelihood that the next candle will match the divergence direction. If the RSI signal doesn’t align, no point is displayed.

3. Cross-Asset Filter
a) Same-Direction Filter

Concept: A signal on the main asset appears only if a similar divergence exists on another asset in the same direction.

Example: A bullish signal on BTC is confirmed if ETH also shows a bullish signal.

Purpose: Increases candle prediction reliability by minimizing false signals from a single asset.

b) Reverse / Inverse Filter

Concept: A bullish signal on the main asset is confirmed if the filtering asset shows a bearish signal.

Example: If BTC shows a signal for a rising candle, but stablecoins (STABLE.C.D) show a bearish signal, this indicates a possible reversal.

Effect: Captures inverse correlations between assets for more accurate next-candle predictions.

4. Divergence Count and Minimum Threshold

The system counts the number of divergences per indicator.

A point (phantom) is displayed only if the number of divergences exceeds the showlimit threshold.

Effect: The minimum-divergence filter prevents false predictions and improves candle prediction accuracy.

5. Signal Formation Logic

A signal appears only when all conditions are met:

There is a divergence (Regular or Hidden) from selected indicators.

RSI on the lower timeframe confirms the divergence direction (rising RSI → bullish, falling → bearish).

Cross-asset filter confirms same-direction or inverse relation with another asset.

Divergence count exceeds the threshold.

If any filter fails, no point is displayed — the indicator stays silent, reducing false predictions.

Visual representation on the chart:

Yellow/Green: Bullish divergences → probable green candle.

Red/Blue: Bearish divergences → probable red candle.

Line style (solid/dotted): Regular or Hidden, helping assess signal strength.

6. Purpose of the Indicator

Automatic detection of zones where the next candle is likely green or red.

Minimizes false signals using RSI and cross-asset filters.

Allows simultaneous analysis of multiple indicators without manual divergence calculation.

Suitable for short-term and intraday strategies on Polymarket, where predicting candle color for 1–15 minute timeframes is critical.

前天

發行說明

Analysis of the "Poly Candle" Indicator for Predicting Candles on Polymarket

The "Poly Candle" indicator is designed to analyze market patterns and predict the direction of the next candle on the Polymarket platform. It uses a complex combination of divergences, low-timeframe filters, and cross-asset checks to generate visual signals about probable price movement.

1. Divergences (Divergence Filter)

What it is: The indicator detects discrepancies between price and a set of technical indicators (MACD, RSI, Stochastic, Momentum, CCI, OBV, VWMACD, CMF, MFI).

Purpose: When the price forms a new high/low, but the indicator does not, this signals a potential slowdown or trend reversal.

Types of divergences:

Regular: Predicts a possible reversal of the candle (bullish or bearish).

Hidden: Confirms the continuation of the current trend and helps clarify the direction of the next candle.

Divergences are based on pivots (local highs and lows), which allow precise identification of points where a candle might change direction.

2. RSI Filter on Lower Timeframes

Function: Checks short-term momentum using RSI on a lower timeframe (e.g., 1-minute) within the current candle.

Why it matters: A divergence on a higher timeframe alone is weak — the lower timeframe checks if RSI aligns with price:

Bullish candle: RSI rises, price forms a local minimum.

Bearish candle: RSI falls, price forms a local maximum.

Effect: Confirms the likelihood that the next candle will match the divergence direction. If the RSI signal doesn’t align, no point is displayed.

3. Cross-Asset Filter
a) Same-Direction Filter

Concept: A signal on the main asset appears only if a similar divergence exists on another asset in the same direction.

Example: A bullish signal on BTC is confirmed if ETH also shows a bullish signal.

Purpose: Increases candle prediction reliability by minimizing false signals from a single asset.

b) Reverse / Inverse Filter

Concept: A bullish signal on the main asset is confirmed if the filtering asset shows a bearish signal.

Example: If BTC shows a signal for a rising candle, but stablecoins (STABLE.C.D) show a bearish signal, this indicates a possible reversal.

Effect: Captures inverse correlations between assets for more accurate next-candle predictions.

4. Divergence Count and Minimum Threshold

The system counts the number of divergences per indicator.

A point (phantom) is displayed only if the number of divergences exceeds the showlimit threshold.

Effect: The minimum-divergence filter prevents false predictions and improves candle prediction accuracy.

5. Signal Formation Logic

A signal appears only when all conditions are met:

There is a divergence (Regular or Hidden) from selected indicators.

RSI on the lower timeframe confirms the divergence direction (rising RSI → bullish, falling → bearish).

Cross-asset filter confirms same-direction or inverse relation with another asset.

Divergence count exceeds the threshold.

If any filter fails, no point is displayed — the indicator stays silent, reducing false predictions.

Visual representation on the chart:

Yellow/Green: Bullish divergences → probable green candle.

Red/Blue: Bearish divergences → probable red candle.

Line style (solid/dotted): Regular or Hidden, helping assess signal strength.

6. Purpose of the Indicator

Automatic detection of zones where the next candle is likely green or red.

Minimizes false signals using RSI and cross-asset filters.

Allows simultaneous analysis of multiple indicators without manual divergence calculation.

Suitable for short-term and intraday strategies on Polymarket, where predicting candle color for 1–15 minute timeframes is critical.