Session candles & reversals / quantifytools

How it works

Session candles are created by capturing open, high, low, and close prices within predefined global trading sessions like London, New York, Sydney, and Tokyo. The indicator tracks session reversals by analyzing price movements and candle formations, checking for specific criteria such as wick formations and engulfing patterns.

Each session is compared to its prior corresponding session to identify potential price direction changes. The indicator calculates win rates and magnitude metrics by examining whether subsequent sessions confirm the reversal's initial signal

Why it may be useful

Session-based candles provide traders with a nuanced view of price movements across different global trading periods, revealing potential trend shifts and market dynamics.

By breaking down price action into specific sessions, traders can gain insights into market behavior that might be missed on traditional timeframe charts. The backtesting metrics offer statistical evidence of reversal reliability, helping traders make more informed decisions about potential entry and exit points

When to explore it

This indicator works best for traders focusing on major global markets, particularly in assets with significant trading activity like futures and cryptocurrencies. It is most effective on timeframes at or below 1-hour charts, where session boundaries are more precisely defined.

Traders should use session candles as one component of a broader analysis, combining them with support/resistance levels, multi-timeframe analysis, and other confirming indicators

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