Scanner Candles v2.01

The "Scanner Candle v.2.01" is an indicator classifies candles based on the body/range ratio: indecisive (small body, ≤50%), decisive (medium body), explosive (large body, ≥70%). It includes EMAs to identify trends and "Reset Candles" (RC), small-bodied candles near EMAs, signaling potential reversals or continuations. Useful for analyzing volatility, breakouts, reversals, and risk management.

Description of the indicator:
The "Scanner Candle v.2.01" indicator classifies candles into three categories based on the proportion of the candle's body to its range (high-low):
Indecisive: candles with a small body (≤ set threshold, default 50%), indicating low volatility or market uncertainty.

Decisive: candles with a medium body, reflecting a clear but not extreme price movement.

Explosive: candles with a large body (≥ set threshold, default 70%), signaling strong directional moves.
Additionally, the indicator includes:

Customizable exponential moving averages (EMAs) to identify trends and support/resistance levels.

Detection of "Reset Candles" (RC), specific candles (e.g., dojis, ) with a small bodies body near EMAs, useful for identifying potential reversal or continuation points.

Coloring and visualization:
Candles are colored by category (white for indecisive, orange for decisive, purple for explosive).

Reset Candles are marked with circles above/below the candle (green for bullish, red for bearish).

Potential uses:
Volatility analysis: Identifying uncertain (indecisive), directional (decisive), or impulsive (explosive) market phases.

Breakout trading: Explosive candles can signal entry opportunities on strong moves.

Reversal detection: Reset Candles near EMAs can indicate turning points or trend continuation.

Trend-following support: Integrated EMAs contextualize candles within the main trend.

Risk management: Indecisive candles suggest avoiding trades in low-directionality phases.

The indicator is customizable (thresholds, colors, thresholdsEMAs, ) and adaptable to various timeframes and strategies, from day trading to swing trading.
Reset Candles:
Reset Candles (RC) are specific candles signaling potential reversals or continuations, often near EMAs. They are defined by:
Small body: Body < 5% of the range of the last 10 candles, indicating low volatility (e.g., doji).

EMA proximity: The candle is near or crosses a defined EMA (e.g., 10, 60, or 223 periods).

Trend conditions: Follows a red candle, with the close of the previous previous candles above a specific EMA, suggesting a potential bullish resumption or stabilization.

Limited spike: The candle has minimal tails (spikes, ) below a set threshold (default 1%).

Minimum timeframe: Appears on timeframes ≥ set value (default 5 minutes) or daily charts.

Non-consecutive: Not preceded by other RCs in the last 3 candles.

Types:
Doji_fin: Green circle above, signaling a bullish bullish setup near longer EMAs.

Dojifin_2: Yellow Red circle below, signaling a bearish setup near shorter EMAs.

Trading uses:
Reversal: RCs near EMAs signal bounces or rejections, ideal for counter-trend trades.

Continuation: In trends, RCs indicate pauses before trend resumption, offering low-risk entries.

Support/resistance confirmation: EMA proximity strengthens the level's significance.

Risk management: Small bodies and EMA proximity allow tight stop-losses.

Limitations:
False signals: Common in volatile or sideways markets; use with additional confirmation.

Timeframe dependency: More reliable on higher timeframes (e.g., 1-hour or daily).

Customization needed: Thresholds (e.g., spike, timeframe) must be tailored to the market.

Conclusion:
Reset Candles highlight low-volatility moments near technical levels (EMAs) that may precede significant moves. They are ideal for precise entries with tight stops in reversal or continuation strategies but require clear market context and additional confirmation for optimal effectiveness.

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