Best Average Candle Size

This indicator, named "Best Average Candle Size with Dynamic Midline" (BACS), is designed to provide insights into the average candle size of a financial instrument along with a dynamically adjusting midline. Here's a brief description of its components and functionality:

1. **Average Candle Size**: The indicator calculates the average size of candles over a specified period, which is the absolute difference between the open and close prices. This average candle size is plotted on the chart, helping traders understand the typical price movement within each candle.

2. **Dynamic Midline**: In addition to the average candle size, the indicator computes a dynamic midline. This midline is determined by calculating the moving average of the average candle size over another specified period. The dynamic midline adapts to changes in the average candle size, providing a reference point for assessing deviations from the average.

3. **Volatility Analysis**: The indicator incorporates the Average True Range (ATR) to assess volatility. ATR is plotted alongside the average candle size and the dynamic midline. Traders can compare the average candle size to the ATR to gauge volatility levels. Higher average candle sizes relative to ATR may indicate periods of heightened volatility.

4. **Trend Strength Analysis**: The indicator also evaluates trend strength by comparing the average candle size to its dynamic midline. When the average candle size is above the dynamic midline, it suggests potential trend strength. Traders can use this comparison to assess the strength of price movements and identify potential trend reversal points.

5. **Visualization and Highlighting**: The indicator provides visual representations of the average candle size, dynamic midline, and ATR on the price chart. It also highlights conditions of interest, such as periods of high volatility or strong trend strength, using customizable background colours.

Overall, the "Best Average Candle Size with Dynamic Midline" indicator offers traders a comprehensive view of average candle size dynamics, volatility, and trend strength, aiding in their technical analysis and decision-making processes.