Candle Body-to-Wick Ratios as a Short-Term Strength Indicator
Summary
The indicator measures each candle’s body relative to its full range, using the ratio to classify candles as strong, weak, or neutral. It presents the current candle’s body and wick proportions alongside a lookback summary of average body ratio and bull-versus-bear dominance. A heatmap colors recent candles by relative body strength, with stronger bodies shown more brightly.
Users can configure the lookback, heatmap length, strength thresholds, colors, and chart-panel appearance. An optional alert triggers when the current candle meets the strong-body threshold. The document describes the display and its settings but provides no tests, market examples, or evidence that candle body ratios predict future returns. The measure captures candle shape over selected bars; it does not account for broader market context or establish a standalone trading edge.
Key ideas
- The indicator compares candle body size with the total candle range to estimate directional conviction.
- A lookback summary reports average body ratio and the balance of bullish and bearish candles.
- A color heatmap visualizes body strength across a configurable run of recent candles.
- An optional alert signals when a candle reaches the selected strong-body threshold.
- The document describes indicator behavior but gives no evidence of trading performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.