Let’s begin with the first color combination in the charts.
And why is this such an essential issue, and should we consider it?
In this article, I will explain everything to you, and at the conclusion, you will understand precisely what I mean.
We as humans have a psychological pull to colors, and red frequently implies psychological peril.
And, for example, green and blue are both good hues.
Colors may elicit a variety of emotions, which vary from person to person.
Color, for example, might be associated with culture or something you have experienced in the past. Overall, colors elicit emotions in humans.
Emotions and Color
Our brain is built to pay attention to items that have a different hue than their surroundings. It aided our forefathers in finding food or detecting potential threats and hazards.
Bright colors also serve survival roles in the animal and plant kingdoms, such as reproduction and protection.
Colors are unquestionably an effective marketing tool. However, the question is if some hues are better for certain reasons than others. Let’s look at how you can use color to influence behavior.
Colors and their emotional connections are deeply ingrained in our culture. They differ between civilizations. You are green with envy in English, and yellow in German (gelb vor Neid sein). The color purple is frequently linked with riches, monarchy, and aristocracy. Purple, on the other hand, is the color of sadness in Thailand and Brazil.
There may also be variances within a culture depending on the context. Red may indicate romanticism (red roses) in a flower store or anger and unfairness during a football match (red card).
Color of Neutral?
But what does this have to do with the graphs? And what about its colors?
Now that we know that colors may elicit specific emotions in individuals, we can expect the same effect in charts.
Of course, there will be a difference; I mean, one trader will be less worried by this than the other.
However, by keeping your charts impartial, you may avoid a lot of revenge trading, trading against your strategy, and so on.
Consider the color scheme of the bottom chart here, for example, in relation to US30. First, I’ll show you a color chart in which most transactions have a lot of emotions, red and green might make you decide to perform a trade faster than you want to, for example.
I’m not claiming that every trader is like this, but even the most experienced traders can detect a hint of emotion in this.
You will find a chart here. I call them a black on black chart since they exhibit little to no emotions for many people, and because there is no color involved in the chart, the component “bullish” buyers / bearish “sellers” is entirely removed.
Because one is not the same as the other, this is truly unique for everyone.
Changing the hues that are pleasing to the sight and, more importantly, to the brain is essential here.
If you are having trouble with this, I strongly urge you to use a chart without colors and see if it enhances your trading.
I also exhibit the results of the photographs above, in both color and neutral.
Don’t let emotions and/or psychological aspects dictate your trading; this is something that normally develops with time.
The message of this message is that if you find yourself in the above message, you should consider changing your color scheme.