Measuring the Ratio of Bullish to Bearish Candles

Summary

Candle_Ratio is an indicator that compares bullish and bearish candlestick movement over a chosen lookback period. For bullish candles, it records the close-minus-open amount as upward movement and assigns zero downward movement. For bearish candles, it records the open-minus-close amount as downward movement and assigns zero upward movement. The resulting ratio is meant to summarize the balance between upward and downward candle bodies across the selected period.

The indicator exposes a calculation period, a smoothing period, and a smoothing method. The description does not state how the two accumulated values are combined into the final ratio, how doji candles are handled, or how the smoothing choices affect interpretation. It gives no entry or exit rules, example readings, or backtest evidence. The measure can describe recent candle-body balance, but the post alone does not establish that it forecasts returns or works consistently across instruments and timeframes.

Key ideas

• The indicator compares upward and downward candle-body movement over a selected period.
• Bullish candles contribute close-minus-open movement to the upward component.
• Bearish candles contribute open-minus-close movement to the downward component.
• Users can set the calculation period and smoothing settings.
• The description does not specify the final ratio formula or provide evidence of predictive value.

Tags

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