Volatility Scanner Using Candle Body and Range Ratios
Summary
The scanner displays two normalized measures for each candle: its body size relative to the average body and its high-to-low range relative to the average range, with both averages based on the previous 100 candles. It arranges readings from the current candle toward older candles and allows users to adjust how many candles appear and the text size. The ratios provide a compact way to compare recent candle structure with its own recent baseline.
Color cues highlight cases where the body is below half its average size. Blue marks that condition alongside a range above half its average; red marks it alongside a range below half its average. The document suggests such patterns may indicate uncertainty or potential swing points, such as doji-like candles. These are possible interpretations rather than demonstrated predictive signals: no market, timeframe, validation, or trading rules are specified, and the description calls the tool a raw-form indicator.
Key ideas
- Each candle is described by body size and high-to-low range relative to their respective averages over the previous 100 candles.
- Blue marks a relatively small body with a range above half its average.
- Red marks a relatively small body with a range below half its average.
- The display may help identify uncertainty or possible swing points, but no predictive evidence is supplied.
- Users can adjust the number of displayed candles and the text size.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.