Using Candle Gain and Loss Thresholds for Market Analysis
Summary
This MetaTrader indicator marks candles whose price changes exceed user-set limits. It reports changes in points and percentages, with separate display colors for gains and losses. The threshold settings let users filter out smaller moves, and a bar limit controls how much history the indicator processes.
Two calculation modes are available: compare a candle’s close with its open, or compare its close with the previous candle’s close. The example uses weekly GBP/USD data and places point counts below candles and percentage changes above them. The document presents the tool as an aid to market review and pattern spotting, rather than a standalone signal generator. Large moves may be considered as possible entry or exit cues, but no trading rules, performance results, or validation are provided. The indicator’s threshold marks therefore describe price changes; they do not establish that those changes predict future returns.
Key ideas
- The indicator displays price changes that exceed configurable point and percentage thresholds.
- Users can calculate changes from open to close or from the prior close to the current close.
- Gain and loss labels use separately configurable colors.
- The tool is intended mainly to support chart analysis and pattern discovery.
- Large changes may be considered as possible signals, but the document gives no evidence that they are predictive.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.