Mapping Candle Body Position to Candle-Shape Frequency

Summary

This experimental indicator bins each candle by where its open and close fall within that bar’s high-low range. It divides the range into a grid and increments the count for the corresponding open-close coordinate, producing a visual frequency map of candle shapes. Bar colors also reflect the relative frequency assigned to each shape, while labels describe broad regions such as small bodies near a tail or large directional bodies.

The display is descriptive rather than a trading system: it does not define entries, exits, or a hypothesis about future returns. The code reports a dispersion measure for the bin counts and uses it to scale color opacity, but the document supplies no sample description, statistical validation, or predictive evidence. The normalization assumes a nonzero high-low range, and the plotted grid and counts depend on the bars available to the chart. Treat it as an exploratory way to inspect candle-shape distributions, not as evidence that common or rare shapes have trading value.

Key ideas

• The indicator maps each bar’s open and close into coordinates within its high-low range.
• It counts occurrences by candle-shape bin and visualizes the distribution in a grid.
• Bar colors encode the frequency of the corresponding candle shape.
• The tool is exploratory and does not specify trade rules or establish predictive value.
• Its counts depend on the chart’s available history and the range calculation assumes nonzero bar ranges.

Tags

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