Using Candle Pressure to Assess Acceptance at Prior Session Levels

Summary

This article presents a framework for evaluating whether price accepts or rejects a previous trading session’s high or low. It combines those boundaries with the Candle Pressure Index (CPI), a measure based on a candle’s close within its high-low range and scaled from negative to positive values. A break beyond a session boundary accompanied by pressure in the direction of the break is treated as evidence of acceptance; a failed move with pressure turning back inward supports a rejection interpretation.

The MQL5 example tracks Tokyo, London, and New York ranges using broker time, handles sessions that cross midnight, and evaluates closed candles with a two-candle model. The article reports consistent construction and matching classifications in live-style and historical modes on EURUSD and XAUUSD. These checks support implementation consistency, not predictive performance. The author frames the method as an analytical aid for contextualizing price behavior, rather than a standalone strategy, and supplies no profitability or risk-adjusted results.

Key ideas

• Prior session highs and lows act as reference boundaries for evaluating later price behavior.
• CPI uses the close’s position within the candle range to assess pressure beyond candle color alone.
• A move beyond a boundary with aligned pressure supports an acceptance reading, while a failed move with opposing pressure supports rejection.
• The example constructs session ranges in broker time and handles windows that cross midnight.
• The reported tests assess classification consistency, not trading profitability.

Tags

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