Price Indicators for Large Open-to-Low Moves and Candle Direction

Summary

This document describes two chart indicators and a screening concept for identifying unusually large differences between a bar’s open and low. The first marks bars when the open-to-low decline, measured as a percentage of the open, exceeds an adjustable threshold; its example default is 10%. The second produces a colored score based on whether the open-to-low span or the close-to-low rebound exceeds a threshold measured relative to the low. Blue indicates a close below the open, while green indicates a close above it. The page says the indicators can be paired with a proscreener and includes formulas for both.

These rules are descriptive filters for price-bar shape, not a complete entry, exit, or portfolio strategy. The document gives no empirical evaluation, asset-specific guidance, or evidence that the patterns predict returns. Threshold selection and bar timeframe are left to the user, and the code’s score can change based on both conditions. The remaining page content is a privacy notice unrelated to the trading method.

Key ideas

• The first indicator flags bars when the open-to-low move exceeds a configurable percentage threshold.\nThe companion indicator scores open-to-low span and close-to-low recovery conditions.\nIts color scheme distinguishes bars closing below or above the open.\nThe page offers formulas but no evidence that these bar patterns predict profitable trades.

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