Big Candle Signals with ADX, Supertrend, and Exit Rules

Summary

This strategy identifies unusually large, high-volume candles and filters them with trend and strength indicators. A bullish signal requires an up candle above a 50-period EMA, a range greater than a multiplied lookback average, volume above a multiplied 200-bar average, and ADX between 30 and 50 while Supertrend indicates the specified direction. The bearish conditions mirror these checks. The script colors and labels qualifying candles, then uses strategy entries and percentage-based profit and loss exits.

The source includes configurable lookback, ADX, stop, target, and test-window settings, but supplies no measured backtest results to assess the stated performance claim. There is also an implementation detail to scrutinize: the candle-use flags are set when a qualifying condition occurs, while entries require that same flag to be true, so entry timing may differ from the apparent first-signal intent. Results will also depend on instrument, bar interval, costs, and the interaction of the exit rules.

Key ideas

• Signals require an unusually wide candle and elevated volume relative to rolling averages.
• EMA position, Supertrend direction, and an ADX range filter the bullish and bearish setups.
• The script includes stop-loss and take-profit exits and configurable backtest dates.
• The source does not provide substantiated performance results, and its candle-use flags affect entry timing.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.