Using Candle Gain and Loss Changes for Market Analysis
Summary
This MetaTrader indicator marks candles whose price changes exceed user-defined thresholds, displaying the change in points and percentage. It offers two calculation choices: compare a candle’s close with its open, or compare its close with the previous candle’s close. Traders can set minimum change limits, choose colors for gains and losses, and restrict how many bars are processed. The example describes a weekly GBP/USD chart using the prior-close comparison, with point counts below candles and percentage changes above them.
The indicator is presented as an aid for scanning market behavior and spotting unusually large moves or possible bullish and bearish patterns. It is not a complete trading strategy, and the document says it is difficult to use as a standalone signal generator. Large changes could inform entries or exits, but no rules for doing so are specified, and the text provides no performance testing or evidence that such signals are profitable. Its outputs depend on the selected thresholds and comparison mode.
Key ideas
- The indicator displays candle changes in points and percentages when they pass configured thresholds.
- It can compare close with open or close with the previous candle’s close.
- Users can configure the thresholds, display colors, and number of bars processed.
- Large moves may help identify market patterns, but the indicator does not define a complete trading strategy.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.