Large Candle Range Breakouts with Configurable Stops and Targets

Summary

This strategy looks for unusually large candle bodies relative to a recent range. It measures the highest open or close and lowest open or close across a configurable lookback, then enters long on a bullish candle or short on a bearish candle when the current body exceeds the prior bar’s measured range. The script is flat-position-only, so it opens a new trade only when no position is active.

Risk controls offer a stop at the previous bar’s low or high, an ATR distance, or a recent swing level. The profit target is set using a configurable multiple of the entry-to-stop distance, and the script plots the range and trade levels and can alert on entries. The description recommends higher timeframes and mentions BTC, while allowing other markets and intervals to be configured. No performance results or comparative evidence are supplied. The source also appears to calculate the swing low using a pivot-high function, so that stop option may not behave as described; results depend on settings, market data, and execution assumptions.

Key ideas

• The signal compares the current candle body with the preceding bar’s rolling range of candle bodies’ open and close values.
• A bullish qualifying candle triggers a long entry, while a bearish one triggers a short entry, provided the strategy is flat.
• Stops can use the previous bar, an ATR-based distance, or a recent swing level.
• The take-profit distance is derived from the stop distance and a user-set risk-to-reward multiple.
• The document gives no backtest performance evidence, and the swing-low calculation in the source appears inconsistent with its stated purpose.

Tags

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