Large Candle Signals Using a Fixed Range Threshold

Summary

This simple candle indicator marks bars whose full high-to-low range exceeds a user-defined threshold. A qualifying candle is classified by its close relative to its open: bullish bars receive an upward marker and green coloring, while bearish bars receive a downward marker and red coloring. Other bars are shown in gray.

The accompanying description suggests using large candles to help confirm support or resistance breakouts or identify possible new trends. The method is a basic measure of absolute candle range, not volatility-adjusted, and the threshold must be chosen to suit the instrument and its price scale. The document gives no backtest, market-specific settings, entry or exit rules, or evidence that the signals predict future movement; the plotted labels alone do not constitute a complete strategy.

Key ideas

• A bar qualifies when its high-to-low range exceeds a user-selected fixed threshold.
• The close relative to the open determines whether a qualifying candle is labeled bullish or bearish.
• Large candles may be used as visual confirmation around support, resistance, or emerging trends.
• Because the threshold is absolute, it needs to be adapted to the instrument and price scale.
• The document offers no performance results or complete trading rules.

Tags

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