Normalized Candlesticks for Price Exhaustion and Level Rebounds

Summary

This indicator rescales each open, high, low, and close using the highest high and lowest low over a rolling lookback, expressing candle values on a zero-to-one-hundred scale. The example uses a 50-period window and displays reference levels at 20, 50, and 80. Because the scale updates with recent extremes, the candles show where each bar sits within that recent range rather than its absolute price.

The description proposes watching whether candles stay above the midpoint during a continuing trend as a possible sign of exhaustion, and using adjustable levels, including Fibonacci-style levels, to look for rebounds or breakouts. These are suggested interpretations, not tested trading rules: the document supplies no performance evidence, entry or exit specification, or risk controls. The code is identified as requiring ProRealTime 10.3 because it uses that platform’s candle-drawing function. The indicator’s usefulness may also depend on the chosen lookback and how it handles a zero-width range, which the description does not discuss.

Key ideas

• The indicator maps OHLC values into a rolling range based on recent highs and lows.
• Its example uses a 50-period lookback and plots reference levels at 20, 50, and 80.
• Sustained candles above the midpoint are proposed as a way to assess possible trend exhaustion.
• Adjustable levels may be used to watch for rebounds or breakouts.
• The document gives no backtest or complete trading rules, and notes a platform version requirement.

Tags

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