Bull and Bear Balance Signals from Current and Previous Candles

Summary

This short-term strategy derives a custom value from the current candle’s open, high, low, and close together with the previous close. A branching formula adjusts the range calculation according to whether the candle closed above, below, or at its open and how its range compares with the previous candle. The resulting value is compared with user-defined sell and buy levels: values above the sell threshold indicate a short bias, while values at or below the buy threshold indicate a long bias. An option can invert those directions.

The document frames this as a fast way to react to changes in candle structure, but provides no evidence that the signal is profitable. Published settings specify BTC/USDT futures with hourly bars over about a month, without reported results. The source relies on one custom measure, has no stop-loss rule, and may generate excessive trades around abrupt moves. The formula is intricate, and the description notes possible failures in extreme conditions. Thresholds therefore need careful testing across instruments and timeframes, with risk controls and signal filters considered.

Key ideas

• The indicator calculates a candle-range value using current OHLC prices and the previous close.
• Sell and buy thresholds convert the value into bearish or bullish positioning signals.
• A reverse-trading option flips the direction of those signals.
• The source has no explicit stop-loss rule and depends on one custom indicator.
• The short BTC/USDT futures test settings provide no reported performance evidence.

Tags

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