Momentum Candles by @PipsandProfitFX

The High Momentum Candles indicator highlights price bars with exceptional price movement and strong volume. It identifies candles with significantly long bodies relative to their shadows, indicating rapid price changes. Additionally, the indicator filters for candles with above-average volume to confirm the strength of the price movement.

Dark red: bearish momentum
Orange: bullish momentum
(You can easily change the momentum candles to whatever color you want in the indicator settings.)

By visually emphasizing these high momentum candles, traders can potentially identify potential trend reversals or continuations, as well as potential entry and exit points.

Key Features:

Identifies candles with large bodies relative to their shadows
Filters candles based on volume to confirm strength
Highlights high momentum candles with a distinct color

Let me know if you'd like to see any updates on this indicator.

Note: This indicator is a visual tool and should be used in conjunction with other technical analysis techniques for making informed trading decisions.

Release Notes

version 6

Change: The default body size percentage for identifying momentum candles has been increased from 70% to 80%. This adjustment will result in:

Fewer candles being identified as momentum candles: As the required body size relative to the true range increases, the indicator will become more selective in identifying significant price movements.

Potentially higher signal quality: By filtering out smaller price moves, the indicator may generate fewer signals, but those signals could have a higher probability of leading to profitable trades.

Note: This is a subjective change, and the optimal body size percentage may vary depending on trading style, market conditions, and individual preferences. Traders may experiment with different values to find what works best for them. Just click the indicator settings button to adjust body size, momentum candle colors, etc.

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.

PipsandProfitFX

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

PipsandProfitFX