Candle Range Theory: Trading AMD Reversals with Range Breaks
Summary
The article presents an MQL5 strategy based on Candle Range Theory’s accumulation, manipulation, and distribution phases. It defines an accumulation range from a candle on a chosen timeframe, then treats a breach beyond the range as potential manipulation. For a bullish setup, the system looks for a downward breach followed by a confirmed close back above the range low; for a bearish setup, it looks for an upward breach followed by a close back below the range high. The reversal is used to enter in the anticipated distribution direction.
Configurable features include a minimum manipulation-depth filter, confirmation bars, position limits by direction, optional trailing stops, and dynamic or fixed stop and target levels based on a risk-reward setting. Chart objects mark the phases and range boundaries. The article says backtesting was performed but supplies no readable performance figures or analysis in the text. Its reversal premise and parameters therefore remain strategy hypotheses requiring independent testing and careful risk control.
Key ideas
- The method defines an accumulation range on a selected timeframe and tracks breaches beyond its extremes.
- A reversal back inside the range, confirmed by bar closes, triggers an entry in the expected distribution direction.
- A manipulation-depth threshold can filter shallow breaches before a setup qualifies.
- Stop and target calculations, confirmation bars, directional position limits, and trailing stops are configurable.
- The article mentions backtesting but gives no usable performance results in the text.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.