An indicator tracking unique candlestick patterns called '1' and '3' bars, highlighting specific price action formations and potential trend reversals based on The Strat methodology.
Explore complementary indicator rolesHow it works
The indicator identifies three unique candlestick formations: '1' bars where the current candle's high and low are within the previous candle's range, '3' bars where the current candle completely engulfs the previous candle, and '2' bars that partially break the previous candle's range. By analyzing these specific bar relationships, traders can quickly recognize potential trend changes and momentum shifts.
Additionally, the indicator draws a 50% line on the previous candle, which helps traders assess the likelihood of a '2' bar transitioning into a '3' bar. This visual reference provides real-time insights into potential price action developments and helps traders make more informed decisions about market movements.
Why it may be useful
Understanding candlestick patterns is crucial for identifying potential trend reversals and momentum changes in financial markets. These specific '1' and '3' bar patterns provide traders with a structured approach to recognizing price action signals that might indicate significant market shifts or continuation of existing trends.
The 50% line reference further enhances traders' ability to anticipate potential price movements by offering a clear visual marker for assessing the probability of trend changes. By systematically tracking these precise bar relationships, traders can develop a more nuanced understanding of market dynamics and improve their decision-making process.
When to explore it
This indicator is most effective in markets with clear and defined price action, such as forex, futures, and actively traded stocks. It works best in timeframes that allow for precise candlestick analysis, typically ranging from 1-minute to 4-hour charts, where price movements are more distinguishable and pattern recognition is more reliable.
Traders should use this signal in conjunction with other technical analysis tools and confirmation indicators to validate potential trade setups. It is particularly useful during periods of market transition, when identifying early signs of trend reversal or momentum shift can provide a strategic advantage in trading decisions.
Keep exploring
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.
