Candle Strength: Close Location Within the Bar’s Range
Summary
The document defines a candle strength measure from the close’s location within the bar’s high-low range. For an up bar, it reports the percentage distance from the low to the close; for a down bar, it reports the percentage distance from the close to the high. The script rounds these values and displays them as labels above or below bars.
The source also contains long and short strategy-entry calls based simply on whether the bar closes above or below its open. It does not connect those entries to the calculated strength percentages, specify exits or position sizing, or explain how the measure should guide a trading decision. Published settings name BTC-USDT futures and a one-year period, but no backtest results are supplied. The document therefore offers a basic descriptive indicator and an elementary directional rule, not evidence that candle strength predicts returns. The percentage calculation also needs care for bars with no high-low range, which would make the denominator zero.
Key ideas
- The indicator measures how close the bar’s close is to the relevant end of its high-low range.
- Up bars display close-to-high strength as a percentage, while down bars display close-to-low strength.
- The source enters long on an up bar and short on a down bar, independent of the displayed strength value.
- No exit rules, position sizing method, or performance evidence is provided.
- A zero-range bar creates a division-by-zero edge case in the percentage calculation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.