Expansion Candles by Alex Entrepreneur
Hey people! Thanks for using Expansion Candles. I designed this tool to help me identify price runs (expansions) based on consecutive bullish or bearish candle closes and then trade continuations on the lower timeframes. Here's what makes it awesome:
How Does It Work?
Key Features
Best,
Alex Entrepreneur
How Does It Work?
- An “expansion” is confirmed after multiple closes above the previous candle’s high (in the bull case) or below the previous candle’s low (in the bear case) while also having a higher candle low than the previous candle (in the bull case) or having lower candle high that the previous candle (in the bear case). After an expansion is confirmed, then the indicator will be displayed on the next candle.
- You can set the number of required candle closes that confirm an “expansion” by increasing or decreasing the "Required Candles For Valid Expansion" setting.
- An expansion will continue until an “invalidation” event occurs this will cause the indicator to stop displaying.
- This “invalidation” can either be a lower candle low than the previous candle (in the bull case) and a higher candle high than the previous candle (in the bear case), or a close below the previous candle’s low (in the bull case) or a close above the previous candle’s high (in the bear case).
- You can choose whether you want to use candle highs and lows as invalidation or candle closes as invalidation by changing the “Invalidation Type” setting to either “Wick” or “Candle Close”.
Key Features
- Price Run Detection: Identify when price is expanding through consecutive bullish or bearish candle closes. You can chose whether a wick or opposite candle close finishes the run.
- Timeframe Selection: Select your preferred timeframe for expansion candles and then view the indicator on lower timeframes for precise continuation entries.
- Custom Display Options: Tailor the way expansions are shown on your chart. Choose your bullish and bearish colours and then display expansions as coloured candles, background colours, boxes, or arrows.
- Sensitivity Adjustment: Adjust the indicator's sensitivity by changing the number of "Required Candles For Valid Expansion" to suit your analysis.
- Set Alerts: Detect new bullish or bearish expansions in your favourite instruments with customisable alerts.
Best,
Alex Entrepreneur