OPEN-SOURCE SCRIPT
Confined Range Candle Finder
This indicator finds candlesticks which are confined within the range of a previous candlestick. This indicates volatility contraction which often leads to volatility expansion, i.e. large price movements.
While every confined range will contain at least 1 inside bar, this indicator differs from the Inside Bar Finder which only finds consecutive inside bars.
This indicator includes options such as:
- The minimum number of candlesticks confined within the range of a previous candlestick to trigger the indicator
- Labels to indicate the number of confined candles
- Signal lines to indicate the high and low of the containing candlestick
Try out this indicator with different options on different timeframes to see if confined ranges increase the probability of identifying the direction of price movements. Breaks or closes outside signal lines can be used to trigger trade signals.
While every confined range will contain at least 1 inside bar, this indicator differs from the Inside Bar Finder which only finds consecutive inside bars.
This indicator includes options such as:
- The minimum number of candlesticks confined within the range of a previous candlestick to trigger the indicator
- Labels to indicate the number of confined candles
- Signal lines to indicate the high and low of the containing candlestick
Try out this indicator with different options on different timeframes to see if confined ranges increase the probability of identifying the direction of price movements. Breaks or closes outside signal lines can be used to trigger trade signals.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Technical analysis should be made as simple as possible, but no simpler. --Albert Einstein
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Technical analysis should be made as simple as possible, but no simpler. --Albert Einstein
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.