NO FOLLOW - THROUGH CANDLE )

Deeper Explanation of the Logic

🟥 What is a "Failed Candle"?
The term "failed candle" refers to a candle setup that breaks the previous candle’s high or low, but then fails to follow through in that direction. This failure is often interpreted as a trap or false breakout by retail traders, which smart money (institutions) may use to manipulate price.

🔄 How the Indicator Detects Failure
📌 Bullish Failure:
Candle 1 (previous) is green → Bullish candle
Candle 2 (current) is red → Bearish candle
Condition: Candle 2 breaks below Candle 1’s low
👉 This suggests bulls tried to push price up, but bears stepped in and broke below that — a failed bullish attempt.


📌 Bearish Failure:
Candle 1 (previous) is red
Candle 2 is green
Condition: Candle 2 breaks above Candle 1’s high

👉 This suggests bears tried to control, but bulls overcame and broke the previous high — a failed bearish attempt.


📐 What the Lines Represent
Once a failure is detected, the indicator:

Draws a green line at the previous candle's high
Draws a red line at the previous candle's low
These two lines mark the range of the failed candle
The lines extend 10 bars to the right for visibility

These levels often act as support/resistance or liquidity zones where price may return to test or react.


📊 How to Use This in Trading

✅ 1. Identify Traps

These failed candles can be liquidity grabs — price hunts stops before reversing.

Common in supply/demand zones, news events, or market opens.

✅ 2. Trade Reversals
When a failed candle forms, it often signals a reversal point.
You can take a counter-trend trade, using the high/low of the failed candle as a stop-loss level.

✅ 3. Support/Resistance Reference
Failed levels often act as future reaction points.

You can mark these levels for later — price frequently respects them.

🧠 Why Is This Effective? (Price Action Psychology)
This logic mirrors institutional behavior:

Institutions often push price above highs or below lows to trigger stop-losses and induce breakout trades.

Once that liquidity is captured, price reverses — leaving breakout traders trapped.

These failed breakouts are strong signals of manipulation, and smart traders watch for them.

This indicator helps you spot where the market lied, so you can align with where it might go next.


📈 Visual Example
Let's say you see:

A red candle (bearish)
Next, a green candle that:
Closes bullish
Breaks above the high of the red candle


The indicator:

Identifies it as a bearish failure
Draws a green horizontal line at the red candle’s high (fake breakout level)
Draws a red line at the red candle’s low
Marks that candle as a "failed bear attempt", hinting a reversal may come

SUGGESTION : USE HIGH TIME FRAME FOR BETTER RESULTS