Detecting Basing Candles by Comparing Body Size with Candle Range
Summary
The indicator marks a candle as basing when its real body is smaller than a chosen percentage of its full high-to-low range. Its default threshold is 50 percent, and the threshold can be changed in the inputs. In MetaTrader 5, detected candles are drawn as custom candles on the main chart; the description also mentions histogram lines for MetaTrader 4.
Users can configure alerts for a newly detected candle through pop-ups, sound, email, or push notifications. The alert setting can target the most recent completed candle or the currently forming candle, which may still change before it closes. The document describes detection and display settings, but gives no trading rules for interpreting the pattern, performance evidence, or guidance on choosing a threshold. A basing candle is therefore a configurable visual signal, not a demonstrated standalone strategy.
Key ideas
- A basing candle has a body smaller than a configurable share of its high-to-low range.
- The default body-to-range threshold is 50 percent.
- MetaTrader 5 displays detections as custom candles on the price chart.
- Alerts can be configured for completed or still-forming candles and delivered through several channels.
- The description offers no evidence that the pattern predicts price direction or improves trading results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.