Measuring Candle Amplitude with High-Low or Open-Close Prices

Summary

The Candle Amplitude oscillator compares the current candle’s size with the preceding candle’s size. Users can define size as the high-to-low span or as the open-to-close change. The indicator colors its line green when the selected amplitude increases and red when it decreases. It also plots a signal line based on the average candle amplitude over a user-selected period.

Its two inputs are the calculation mode and the signal period. This makes it a compact way to observe whether candle movement is expanding or contracting under the chosen definition. The description explains the indicator’s display and settings but supplies no charts, tested markets, trading rules, or performance evidence. Amplitude alone does not indicate direction, and the document does not establish that changes in the oscillator predict future price moves.

Key ideas

• The oscillator tracks candle size using either the high-low span or the open-close change.
• Its color reflects whether the current selected amplitude is larger or smaller than the previous candle’s.
• A signal line shows average amplitude over a configurable period.
• The indicator describes movement size, but the document provides no evidence of predictive value or a complete trading strategy.

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