Candle 2 Closure

📌 Indicator Presentation – Candle 2 Closure

"Candle 2 Closure"s is an indicator designed to identify three types of price–action-based signals in real time: Long, Short, and Generic.
The goal is to visually highlight moments when the market breaks a key level of the previous candle but rejects that break, closing on the opposite side.

The idea was inspired by the study of pure price action and specifically by the following video:
👉 youtube.com/watch?v=tyoxl1l-6iI&t=346s

🎯 How the Indicator Works

The indicator generates signals on bar close (barstate.isconfirmed), making them reliable and free from repainting.

🔵 LONG Signal

A long signal is triggered when:

The current candle breaks the low of the previous candle

But then closes back above that low

→ This is often a sign of a bear trap or a liquidity rejection to the downside.

🔴 SHORT Signal

A short signal is triggered when:

The current candle breaks the high of the previous candle

But then closes back below that high

→ This may indicate a bull trap or a liquidity rejection to the upside.

⚪ GENERIC Signal

A generic signal is triggered when:

A high or low is broken,

But neither the long nor short conditions are met,

Resulting in a simple unconfirmed break.

📍 Operational Advantages

Highlights liquidity absorption zones

Works on all timeframes (1m → 1D)

Useful for scalping, intraday, or swing trading

Clear and immediate visual signals on the chart

Zero repainting

✨ Visual Style

LONG displayed below the candle, white color

SHORT displayed above the candle, white color

Generic signal shown with a neutral label