OPEN-SOURCE SCRIPT

Volatility-Driven Candle

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This indicator identifies and highlights "volatility-driven candles" on a price chart, based on their body size relative to market volatility. It calculates the Average True Range (ATR) over a 14-period window to measure volatility. A candle is considered "volatility-driven" if its body (the difference between the close and open prices) exceeds a user-defined threshold, which is specified as a multiple of the ATR.

The script distinguishes between bullish and bearish volatility-driven candles:

Bullish volatility-driven candles (where the close is greater than the open) are marked with a blue label.

Bearish volatility-driven candles (where the close is less than the open) are marked with an orange label.

Additionally, the background color of the chart is shaded:

Blue for bullish volatility-driven candles.

Orange for bearish volatility-driven candles.

This script helps traders easily spot significant price movements relative to volatility, highlighting potential reversal points based on candle body size.

Penafian

Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.