Using Inverted Candlesticks to Inspect High-Volume Market Reversals

Summary

This short indicator note proposes viewing price action with candlesticks plotted at inverted values, alongside volume, to gain another perspective on potential market turning points. Its example implementation lets the user switch between ordinary and inverted candle display while preserving the usual up-bar and down-bar colors. The accompanying explanation suggests that unusually high volume near price extremes, when considered with the inverted view, may signal a reversal.

The document offers an indicator visualization rather than a tested trading system. It gives no quantitative definition of “ultra-high” volume, no entry or exit rules, and no backtest or performance evidence. The signal should therefore be treated as a visual prompt for further analysis, not as proof that a reversal will occur. The rest of the page concerns account data and privacy and does not add trading guidance.

Key ideas

• The indicator plots price candles with their values inverted when a setting is enabled.
• It retains candle colors based on whether the close is above or below the open.
• The author suggests comparing the inverted view with volume near market extremes.
• High volume at an extreme is presented as a possible reversal clue, not a confirmed signal.
• The note provides no thresholds, trade rules, or performance evidence.

Tags

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