A trading signal that identifies unique candles by comparing their body size to Average True Range (ATR), helping traders spot potentially significant price movements.
Explore complementary indicator rolesHow it works
The Pay Attention Candles signal analyzes individual candlesticks by measuring their body size relative to the Average True Range (ATR). It calculates the candle's body size by comparing the open and close prices, excluding the wicks, and then compares this value to the ATR multiplied by a specific multiplier (default 1.5).
By default, the ATR is calculated using a 9-period window, but this can be adjusted based on the trader's preference. When a candle's body exceeds the ATR multiplier threshold, it is flagged as a 'Pay Attention Candle', potentially signaling an important market movement or trend shift.
Why it may be useful
The Pay Attention Candles signal provides traders with a dynamic method to identify potentially significant price movements that might otherwise go unnoticed. By comparing candle body size to volatility, it helps traders recognize moments when price action becomes more substantial and meaningful.
This approach allows traders to quickly filter out standard, low-impact price movements and focus on candles that represent more significant market sentiment shifts. It can serve as an early warning system for potential trend changes or momentum buildup, enabling more informed trading decisions.
When to explore it
The Pay Attention Candles signal is most effective in markets with moderate to high volatility where price movements can be more pronounced and meaningful. It works best on shorter timeframes like 1-minute, 5-minute, and 15-minute charts, making it particularly suitable for scalping and day trading strategies.
Traders should use this signal in conjunction with other technical analysis tools to confirm potential trade signals. It is especially useful during periods of market uncertainty or when looking to identify potential trend reversals or momentum shifts in various financial instruments.
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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.
