CandleCounter Strategy Using Recent Candle Direction
Summary
This strategy counts bullish, bearish, and neutral candles across a recent window of seven bars. It assigns each candle a direction from the relationship between its close and open, treating a rounded zero difference as neutral. The indicator starts with the number of bullish candles minus bearish candles, then adjusts the result by adding neutral candles when the difference is positive or subtracting them otherwise. A positive result triggers a long entry; a nonpositive result triggers a short entry, with the entry conditions arranged so only one side is selected at a time.
The document presents the script as a rewrite intended to work across charts, but supplies no systematic backtest results, market, or timeframe recommendation. A commenter warns that tests on Heikin Ashi charts can use synthetic prices and may not reflect executable prices. That caveat matters when evaluating historical performance. The rule is a simple directional count rather than a demonstrated predictive model; its behavior and costs would need assessment across ordinary price data, instruments, and market regimes before drawing conclusions.
Key ideas
- The strategy classifies each of the latest seven candles as bullish, bearish, or neutral.
- It adjusts the bullish-minus-bearish count using the number of neutral candles.
- A positive adjusted count selects a long entry, while a nonpositive count selects a short entry.
- The document does not provide systematic performance results or recommend a timeframe.
- Backtests on Heikin Ashi charts may use synthetic prices that differ from tradable market prices.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.