Candels High Open: A Three-Bar Directional Signal
Summary
Candels High Open is described as a simple indicator that evaluates the direction of the three completed bars immediately before the current bar. It returns a positive signal when all three rise, a negative signal when all three fall, and zero when neither condition holds. The current, still-forming bar is excluded from the calculation, which makes the rule depend on completed price bars.
A reverse-signals setting can invert positive and negative outputs. The text explains that the signal module is intended for use as a component in an automated trading system, from which an Expert Advisor can be assembled. It does not specify entry timing, exits, position sizing, or risk controls, and it offers no test results or market-specific evidence. The directional rule is therefore a basic trend-following signal definition, not a complete strategy; its behavior will also depend on the bar interval and the way a trading system acts on the signal.
Key ideas
- The indicator checks the direction of the three completed bars preceding the current bar.
- Three rising bars produce a positive signal, while three falling bars produce a negative signal.
- Mixed or otherwise non-uniform bar directions produce a neutral signal.
- A setting can reverse the sign of directional signals, but the description supplies no full trading or risk-management rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.