A candle rating system that measures the close's position within a price bar's range, providing a quick visual momentum indicator scored from 1-5 across different trading timeframes.
Explore complementary indicator rolesHow it works
The Candle Rating indicator calculates the total price range of each candlestick by subtracting the low price from the high price. It then determines the close's position as a percentage within that range, with 0% representing a close at the low and 100% representing a close at the high.
Based on this percentage, the indicator assigns a rating from 1 to 5, with 1 being a strong buy signal (close in top 20% of range) and 5 being a strong sell signal (close in bottom 20% of range). This numeric rating is plotted above each candlestick, using a color gradient from green to red to visually represent momentum.
Why it may be useful
The Candle Rating provides traders with an immediate visual representation of price momentum and potential trend reversal signals. By quickly assessing where each candle closes within its range, traders can gain insights into market sentiment and potential directional changes without complex calculations.
This simple yet effective indicator helps traders make faster decisions by offering a standardized way to evaluate individual candle strength. The color-coded numeric ratings allow for quick scanning of multiple charts and timeframes, enabling traders to identify potential entry and exit points more efficiently.
When to explore it
The Candle Rating indicator works best in markets with clear trending or ranging characteristics, such as forex, stocks, and cryptocurrencies. It is particularly useful during periods of moderate volatility where price action provides clear signals about market sentiment and potential directional shifts.
Traders should use this indicator in conjunction with other technical analysis tools to confirm signals and reduce false positives. It is especially effective when combined with trend-following indicators or volume analysis to validate the momentum suggested by the candle ratings.
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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.
