Measuring How Often Candlestick Bodies and Shadows Occur

Summary

This document explains an indicator that counts how often candlesticks fall into selected size ranges for their bodies and upper or lower shadows. It displays the frequencies as visual scales on a chart, which can help identify whether large, small, or average candle components are common in a chosen historical window. An example configuration measures body sizes in increments of two points across a range from zero to fifty points over one thousand candles.

Users set the beginning and end of the measurement window, body and shadow size bounds, the number of divisions, display colors, scale multipliers, and chart offsets. The indicator needs sufficient history for the selected range; without it, processing may be delayed. It does not round to whole numbers, so its readings can differ by one tick. The document describes a visualization utility rather than a trading signal or tested strategy, and gives no performance evidence or rules for acting on the measured frequencies.

Key ideas

• The indicator counts candle bodies and upper and lower shadows by size over a selected historical window.
• Its chart scales visualize how frequently each configured size range appears.
• Users configure the measurement range, size bounds, divisions, colors, scale, and chart placement.
• Insufficient price history can delay processing, and the lack of whole-number rounding can create one-tick deviations.
• The document offers no evidence that these frequency measurements predict returns.

Tags

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