Candle Pressure Index Mini-Candles for Reading Intra-Bar Pressure
Summary
This article presents the Candle Pressure Index (CPI), a price-action indicator that estimates buying or selling pressure from a candle’s closing location within its high-low range. The normalized value runs from bearish pressure near the low, through neutral near the midpoint, to bullish pressure near the high. The indicator plots compact mini-candles anchored at each bar’s midpoint; their direction and height show pressure direction and strength. Configurable zones distinguish mild from strong readings, and optional arrows mark strong zones.
Alert logic evaluates closed bars and triggers on changes between CPI states, including entries into strong zones and optional exits or sign flips. The article describes implementation and testing procedures and presents examples, including a Step Index chart. It characterizes the output as non-repainting because the current forming bar is excluded and signals are evaluated after closure. CPI measures close location rather than order flow, and the article presents it as an analytical aid, not a trading recommendation or proof of predictive advantage.
Key ideas
- CPI measures where a candle closes within its high-low range to estimate directional pressure.
- Mini-candle direction indicates pressure bias, while marker height represents its strength.
- Thresholds classify readings into neutral, mild, and strong buying or selling zones.
- Alerts are based on state transitions on closed candles to avoid repeated notifications during a persistent condition.
- The indicator adds a view of candle structure but does not itself establish predictive value or generate trades.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.