A candle signal analyzing price movement direction by measuring body size and closing price relative to opening price. Helps identify potential trend shifts and market sentiment.
Explore complementary indicator rolesHow it works
The signal identifies bearish and bullish candles based on their body size and closing price relative to opening price. A bearish candle closes below its opening price, with the body occupying at least 55% of the total candle range.
Conversely, a bullish candle closes above its opening price, also requiring a body of 55% or more. These candles are automatically colored red or green respectively. The indicator tracks these candles' highs and lows, drawing blue and red lines to mark their boundaries and providing visual reference for potential trend changes
Why it may be useful
This candle signal is crucial for traders because it provides immediate insight into market sentiment and potential trend reversals. By analyzing candle body size and closing price, traders can quickly assess buying or selling pressure.
The signal helps identify resistance and support levels, making it valuable for entry and exit decisions. It offers a quick visual representation of market dynamics, allowing traders to make rapid assessments about potential price movements and underlying market psychology
When to explore it
The candle signal works best during periods of clear market trends and when price action is decisive. It is most effective in markets with consistent volatility, such as forex, stocks, and cryptocurrencies.
Traders should use this signal in conjunction with other technical indicators to confirm potential trend changes. It is particularly useful during key market sessions, like European and US trading hours. The signal provides more reliable insights in timeframes ranging from 1-minute to daily charts
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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.
