Detecting Wide Range Body and Hidden Gap Candlestick Patterns

Summary

The document describes a chart indicator for marking Wide Range Body (WRB) candles and Hidden Gap (HG) patterns. It flags a candle when the absolute difference between its open and close exceeds that of each of the preceding three candles, placing a marker at the body midpoint. A later check marks the earlier WRB when the current candle’s range is separated from the range two bars earlier, indicating a hidden gap under the stated rule.

WRB markers are dark and HG markers are light blue; both can appear on the same candle. The document provides indicator logic but no market, timeframe, performance results, or evidence that these formations predict returns. It is a visual pattern-recognition aid, so traders would need to define entry, exit, and risk rules and test them on their chosen data before treating the signals as a strategy.

Key ideas

• A WRB is identified when its candle body is larger than each of the prior three bodies.
• The WRB marker is placed at the midpoint between the candle’s open and close.
• An HG marker is applied to a prior WRB when the current bar’s range is separated from the range two bars earlier.
• The indicator displays WRB and HG markers in different colors, and both may coincide.
• The document supplies no evidence that either pattern forecasts profitable trades.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.