Pine Script V4 Color Gradients (& my first SIX FIGURE winning trade on Cardano!🥳)

hi traders in today's video i'm going to
be showing you how to use a new feature
that
the tradingview team recently added to
pinescript
this week i was planning to release the
seventh video in my auto view series
where i show you how to expand
the strategy script that we wrote in the
previous lesson
and add a bunch of filters to that
script but this week we had a gigantic
market crash in the crypto markets and
so i've been
very very busy managing my own money and
actively trading this week
i actually had the most profitable day
of my entire career
yesterday trading this correction on
cadano i managed to buy
very very close to the bottom
at one dollar and four cents u.s which
resulted in me having my very first
six figure profitable trading day which
was pretty exciting to say the least
i managed to sell up here at 2.37
i sold roughly half of my holdings and i
bought back in at a dollar and four
cents which is the best trade i've ever
made in my entire life
and here is the proof that on the 16th
i actually did sell half of my kadano
position
at 2.37 cents up on this week here
just really quickly the reason why i did
that was because on a five minute time
frame
uh we began making lower
lows and lower highs and so i sold on
this retracement here
and i was fully prepared to buy back in
if i was wrong and price
broke out above this previous high but
price never
did break through that previous high and
in fact
we had one of the biggest market crashes
that i've seen in crypto
in a very long time but anyway i'm not
saying all this just to brag
i'm just pointing out that over the
years i have become very very confident
in my own trading techniques and
processes and i do plan to
create a trading course later this year
demonstrating and explaining how i
analyze charts
why i picked all of these key support
and resistance levels on my chart
why i sold up here and brought back down
here and in fact i sold some more of my
position
in here at around 1.80 on a lower time
frame and
i have already bought back in to my
position down at
a dollar seventy so in a matter of two
or three days i have significantly
increased my cardano holdings
using extremely simple trading
techniques and i'm really excited to
pass on the knowledge that i've learned
over the past four or five years of
trading
and so if you're interested in learning
how i trade keep an eye out for that
course which i'll start rolling out at
some point later in the year
hopefully if i get time it's actually
really hard to find the time to make all
of these videos when i'm actively
trading my own accounts and managing my
own investments
but anyway enough about that let's get
into today's video
next week i'll pick up where i left off
in the previous auto view video
but for today we're just going to cover
an extremely simple but interesting pine
script update
that the team made where we can now work
with color gradients
so overnight the pine script team added
a new functionality or feature
to pine scripts dealing with colors so
we now have more control over the colors
we use in our scripts
it's a small change but it's a nice
change for those of you who like to have
your scripts look more aesthetically
pleasing so this will just be a quick
video
explaining the new changes and how you
can use them in your scripts so they've
added a couple of new functions
2pin script the first one is this
color.rgb function
which takes four function parameters
which is your red color green color blue
color and transparency now those of you
who are familiar with other programming
languages and have used rgb coloring
before
we'll already be familiar to this sort
of method
for generating colors so the numbers are
between 0
and 255. 0 being
no green or no red or no blue and 255
being
bright red bright green bright blue so
this is a little bit different to
hexadecimal coloring
and perhaps a little more intuitive so
i'll leave a link to this article
beneath this video the pinescript team
have included a couple of examples of
how to use
this code but we'll jump over to the
pine editor in a moment and play around
with an example so that's the first
change that made is this new color.rgb
function
the second function that they've added
is this color.from gradient
function which allows you to change the
color of something on your chart
based on where the value falls between
two
numbers so in this particular example
the script is plotting the rsi and the
closer the rsi is to 70
the more red the rsi turns and the
closer it is to 30
the more green the rsi turns and this is
all achieved
using this new from gradient function so
you can see here they're passing the rsi
value
they're passing their lower limit and
their upper limit and the two colors
they want to
calculate the gradient between and the
closer the rsi value is to 30
the closer the color is to lime green
and the closer that value is to 70
the closer the color is to red and you
can see that this allows
you to achieve some pretty cool stuff on
your charts it can really make some of
these scripts look a lot more futuristic
and modern so let's jump over to the
pine editor and
break down this particular example i've
just added a few comments
to this script to better explain what's
going on here
so this script is just plotting an rsi
standard rsi
14 length period with the price source
being the closing price
the first thing that's happening here is
we're creating a custom function
that takes two parameters one is the
color we want to work with
and the other is the transparency we
want to work with
and so later on the script is filling
the background it might be a bit hard to
see because of how
faint or transparent the coloring is but
the background of this rsi
is changing color based on the color of
the rsi so we'll come back to this
custom function in a moment
let's go over how the rsi coloring works
first because this function depends on
the rsi color being a parameter so the
first thing we do is just get the rsi
here
the second thing we do is get the color
gradient of the rsi so that's the actual
color
of this line that is plotting onto the
chart we do this using the color.from
gradient function
which takes several parameters the first
one is the value
we want to reference the second
parameter
is our bottom value so the closer this
value gets to
our bottom value the closer the color
will be to our bottom color
and the closer this value is to our top
value
the closer the color will be to this top
color
so we wanted to we could change this to
anything we could change this to
blue and color.green for example
if i save the script the gradient will
change
so this is a really cool feature that
makes it extremely simple
to basically create like a heat map kind
of
effect so let me change these back for a
moment
and move on to this custom function here
so the next thing we do is we just draw
our upper and lower limit
we're using the new color color.rgb
function
just to demonstrate how this works so
this is your red
green blue value and as you can see this
upper
limit the overbought limit has a higher
red amount than
blue and green and that makes the color
more red and once we plot our upper and
lower limit
we then fill the background between
these two limits with this color
function here which is this custom
function and we're passing
the color gradient of the rsi so the
color of our rsi line
into that custom function along with a
transparency amount which in this case
is 90 so 90
transparency then this function is
getting the red
value from our rsi color then
it's getting the green value and the
blue value and then we are rebuilding
that color using the color.rgb function
we're passing in the red value the green
value the blue value and our
transparency
here which is again 90 so there are
obviously more efficient ways to do what
the script is doing this is purely just
demonstrating
how we can use these new functions in a
practical manner
in our scripts and it's actually pretty
cool for example one use case for this
might be
a heat map like i mentioned so i have a
arvol by time script here that i created
uh many months ago
and it has a heat map color scheme here
and i had to custom code the color
gradients here so the more volume that
was printed on
a bar the brighter the color is i could
actually
add this color gradient functionality to
this script
which would mean i don't have to hard
code
the color gradients so that's it for
today's example of this latest pine
script update
if you want more information i'll leave
a link to the blog article beneath this
video
i've got a few more examples over there
a few more code examples
but that'll do it for today thanks for
watching best of luck with your trading
and coding and i'll see you in the next
lesson
you