Candle Counter Strategy: Directional Majority Across Recent Bars

Summary

This strategy turns recent candle direction into a simple directional score. It counts up, down, and neutral bars in a rolling window, then subtracts down bars from up bars. Neutral bars adjust the score in the direction of the existing majority: they strengthen a positive score and weaken a nonpositive one. A positive final score triggers a long entry; a nonpositive score triggers a short entry, with the conditions written so the strategy does not issue both at once.

The author says this rewrite was intended to work across charts after an earlier version had compatibility problems. The document supplies no systematic performance results, market or timeframe guidance, or explicit risk controls. A commenter also cautions that backtests on Heikin Ashi charts can use synthetic prices that may not be available for live execution, so results should be checked against standard candles and realistic fills.

Key ideas

• The method classifies bars as rising, falling, or neutral and counts them over a recent window.
• It forms a directional score from the difference between rising and falling bars.
• Neutral bars increase the magnitude of a positive score or reduce a nonpositive score.
• The score selects long or short exposure, but the document gives no defined stop or target rules.
• Backtests on synthetic Heikin Ashi candles may not represent executable market prices.

Tags

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