Impulse Candle with Volume & Std Analysis

Impulse Candle with Volume & Std Analysis

This indicator highlights “impulse” candles on your chart by combining price action and volume analysis to gauge the strength of market moves.

How It Works:

Impulse Candle Detection:
The indicator measures the candle’s body size and compares it to the Average True Range (ATR). When a candle’s body exceeds a user-defined multiple of the ATR (the “Impulse Factor”), it is flagged as an impulse candle.

Volume Analysis:
For each impulse candle, the indicator calculates the expected volume (Impulse Factor × average volume) and compares the actual volume against this expected value. It uses the standard deviation of volume over a specified period to classify the move’s volume as:

Extreme Low: More than 2 standard deviations below the expected volume

Low: Between 1 and 2 standard deviations below expected

Normal: Within 1 standard deviation of expected volume

High: Between 1 and 2 standard deviations above expected

Extreme High: More than 2 standard deviations above expected



Visual Cues:

The impulse candles are color-coded based on the volume classification.

A text-only label (with customizable text color) appears just above each impulse candle, indicating its volume category. The label has no background, ensuring a clean, unobtrusive look.

Customization:
Users can adjust parameters such as the Impulse Factor, ATR length, and volume averaging period to tailor the indicator to their trading style.

This tool is perfect for traders who want a quick visual representation of both significant price moves and the corresponding volume strength behind those moves.