OPEN-SOURCE SCRIPT
Updated Efficient Candle Range (ECR)
Efficient Candle Range (ECR)
A custom-built concept designed to detect zones of efficient price movement, often signaling the start, pause, or end of an implied move.
What is the Efficient Candle Range?
The Efficient Candle Range (ECR) is a unique tool that identifies price zones based on efficient candles—candles with relatively small bodies and balanced wicks. These candles reflect balanced or orderly price action, and when grouped into a range, they can reveal areas of temporary equilibrium in the market.
Rather than focusing on single candles, ECR builds a range that dynamically adjusts as new efficient candles form. This gives traders an objective way to track potential areas of absorption, distribution, or transition.
Why use ECR?
Efficient candles often occur:
While ECRs can appear in any market condition, their interpretation depends on context:
How it works
Each active range is labeled "ECR" within the box for easy tracking.
Customizable in settings
Suggested usage
Let the ECR define your observation zone.
Instead of reacting immediately to an efficient candle, wait for a confirmed breakout from the ECR to validate the next move.
Whether you trade breakouts, reversals, or continuation setups, ECR provides an objective way to visualize price balance and understand when the market is likely to expand.
Designed for individual traders looking to build structure around efficient price movement — no specific methodology required.
A custom-built concept designed to detect zones of efficient price movement, often signaling the start, pause, or end of an implied move.
What is the Efficient Candle Range?
The Efficient Candle Range (ECR) is a unique tool that identifies price zones based on efficient candles—candles with relatively small bodies and balanced wicks. These candles reflect balanced or orderly price action, and when grouped into a range, they can reveal areas of temporary equilibrium in the market.
Rather than focusing on single candles, ECR builds a range that dynamically adjusts as new efficient candles form. This gives traders an objective way to track potential areas of absorption, distribution, or transition.
Why use ECR?
Efficient candles often occur:
- At the beginning of a new move, after a liquidity sweep or shift in sentiment
- At the end of a strong move, as momentum fades
- Within consolidation zones, where price trades in a balanced, indecisive state
While ECRs can appear in any market condition, their interpretation depends on context:
- In a range, an ECR might just reflect sideways balance.
- But after a sweep or breakout, it could signal a potential shift in direction or continuation.
- A close outside the ECR often marks the end of that balance and the start of a new impulse.
How it works
- The script detects efficient candles based on body-to-range ratio and wick symmetry.
- Consecutive ECs are grouped into a live ECR box.
- The box dynamically extends as long as price stays inside the high-low range.
- Once a candle closes outside, the ECR is considered invalid (fades visually, but remains visible for reference).
Each active range is labeled "ECR" within the box for easy tracking.
Customizable in settings
- Max body percentage of range
- Max wick imbalance
- Box and label color/transparency
Suggested usage
Let the ECR define your observation zone.
Instead of reacting immediately to an efficient candle, wait for a confirmed breakout from the ECR to validate the next move.
Whether you trade breakouts, reversals, or continuation setups, ECR provides an objective way to visualize price balance and understand when the market is likely to expand.
Designed for individual traders looking to build structure around efficient price movement — no specific methodology required.
Release Notes
Update Summary:This update introduces a significant new feature that alerts you when an Efficient Candle (EC) forms on other timeframes than your currently selected chart. This enhancement helps you maintain multi-timeframe awareness without needing to constantly switch charts.
New Features:
- Multi-Timeframe EC Alerts:
When an Efficient Candle forms on any of the timeframes you define (e.g., 3m, 4m, 5m), a label will appear on your current chart, even if you are not on that timeframe. These alerts help you spot potential areas of interest across timeframes.
- Non-intrusive design:
Labels are only shown for timeframes other than your current chart, and they remain visible for 2 completed bars. This ensures you are alerted without cluttering your chart with overlapping or irrelevant signals.
- Based on candle close (not live):
Alerts are only triggered after the EC candle closes, to reduce false signals during volatile price action.
Improved Usability:
- EC alerts no longer flicker or disappear mid-bar.
- Alerts are timestamped and automatically removed after two full candles to keep your chart clean.
Note:
This update does not alter the core ECR box behavior or range detection logic. It is purely an informational/alerting feature designed to complement the existing system.
Release Notes
Description (update log):Minor visual update:
- Added a box around single Efficient Candles (ECs) to improve visibility when no range forms.
- Updated terminology: replaced all “HTF” mentions with “MTF” for consistency.
No changes to core detection logic.
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.
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.
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.