Displaying Candle Direction Across Multiple Timeframes

Summary

This indicator displays whether candles are rising, falling, or unchanged across intraday and longer timeframes, from one-minute bars through monthly bars. It compares each candle’s open and close, then uses a color-coded text label to show the direction for each timeframe. The author says the indicator should be run on a smaller chart timeframe; when using a larger chart interval, code for the smaller intervals must be removed.

The material provides a concrete charting aid for comparing candle direction across intervals, but it does not define entry or exit rules, explain how to handle incomplete higher-timeframe candles, or present tests showing predictive value. Candle direction records only the open-to-close relationship and omits the size of the move, volatility, volume, and broader market context. It is therefore a visualization component rather than a complete trading strategy, and users should verify how their platform updates higher-timeframe values while a bar is still forming.

Key ideas

• The indicator classifies each timeframe’s candle as down, up, or unchanged based on its open and close.
• Color-coded labels present direction across timeframes from minute bars through monthly bars.
• The author advises removing smaller-timeframe sections when the chart uses a larger interval.
• The display does not supply trading rules or evidence that candle direction predicts future returns.
• Higher-timeframe readings may require care while the current bar is still forming.

Tags

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