A trading signal that identifies potential buy or sell opportunities by comparing current candle activity with previous candle, using specific size and wick percentage filters.
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The signal analyzes current candlestick characteristics relative to the previous candle, focusing on size and proportion. When the current candle's size is at least three times larger than the previous candle, a potential trading signal is generated based on whether the candle is bullish or bearish.
Additional filters are applied to validate the signal, such as ensuring the signal candle closes above or below the previous candle. For bullish candles, the top wick must not exceed 3% of the candle's body range, and the same criterion applies inversely for bearish candles.
Why it may be useful
This signal provides traders with a structured approach to identifying potential trend continuation or reversal moments based on candle size and configuration. By establishing clear, quantifiable criteria for signal generation, traders can make more objective entry and exit decisions.
The methodology helps reduce emotional trading by providing a systematic framework for evaluating market momentum. It offers insights into potential price movements by analyzing the relative strength and characteristics of consecutive candlesticks.
When to explore it
The signal is most effective in markets with clear trending behavior and moderate to high volatility. It works particularly well in timeframes that capture meaningful price movements, such as intraday and short-term trading scenarios.
Traders should apply this signal in conjunction with other technical analysis tools to confirm potential trade setups. It is especially useful for identifying rapid momentum shifts and potential breakout or breakdown scenarios in various financial markets.
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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.
