Body/Range is a volatility indicator that measures the percentage of a candle's body relative to its total range, revealing the confidence and health of price movement.
Explore complementary indicator rolesHow it works
The Body/Range indicator calculates the ratio between a candle's body and its total range by dividing the body size by the high-low range. This creates a percentage value between 0 and 100%, showing how much of the total price movement is contained within the candle's body.
By comparing the body size to the total range, traders can quickly assess the strength and conviction behind a particular price movement. A higher percentage indicates a more decisive candle with stronger directional momentum, while a lower percentage suggests more uncertainty and potential indecision in the market.
Why it may be useful
The Body/Range indicator provides traders with a quick visual representation of price action confidence and market sentiment. It helps identify the strength of current price movements by revealing how much of the total price range is occupied by the actual price change.
By understanding the relationship between a candle's body and its total range, traders can gain insights into potential trend strength, market volatility, and potential reversal signals. This metric can be particularly useful in assessing the psychological state of market participants and their commitment to a particular price direction.
When to explore it
The Body/Range indicator is most effective when used in conjunction with other technical analysis tools and during periods of active price movement. It works best in markets with clear trend characteristics and can help traders identify potential entry and exit points.
Traders should pay special attention to significant changes in the Body/Range ratio, such as sudden shifts from low to high percentages or vice versa. These changes can signal potential trend reversals, momentum shifts, or changes in market sentiment that might not be immediately apparent from price action alone.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
