Large Body Candle Indicator

5天前

Functionality

Comparison: The indicator compares the body size of the current candle to the maximum body size of the previous 5 candles.

Bullish Candles: When a bullish candle (close > open) has a larger body than the previous 5 candles:

A green triangle is plotted below the candle
The candle is colored green

Bearish Candles: When a bearish candle (close < open) has a larger body than the previous 5

candles:
A red triangle is plotted above the candle
The candle is colored red

Key Components
Lookback Period: Default set to 5 candles, but can be adjusted by the user.

Body Size Calculation: Calculated as the absolute difference between the open and close prices.

Maximum Previous Body Size: Determined by comparing the body sizes of the previous 5 candles.

Candle Classification: Candles are classified as bullish or bearish based on the relationship between open and close prices.

Visual Indicators:

Shape plotting for triangles
Bar coloring for highlighted candles

User Customization
Users can adjust the lookback period through the indicator settings, allowing for flexibility in identifying significant candles based on recent price action.

Use Cases
Identifying potential breakout candles
Spotting significant price movements
Enhancing visual analysis of price action
Supporting decision-making in trading strategies

Limitations
The indicator does not predict future price movements
It's based solely on recent price action and doesn't consider other technical or fundamental factors

Conclusion
The Large Body Candle Indicator provides a simple yet effective way to visually identify candles that show significant price movement relative to recent price action. It can be a valuable tool when used in conjunction with other technical analysis methods.