The script uses the previous candle of the current timeframe to assess the state of the current candle.
1. Previous candle high/low and midpoint are displayed
2. Highlights current bar if INSIDE previous candle
3. Highlights current bar if POTENTIAL OUTSIDE bar. This condition uses the logic that if the previous high/low has been swept and price then reaches previous bar 50%, then an OUTSIDE bar is possible.
4. If current candle breaks previous high/low, a label is added to identify.
5. If above condition is true and current candle color is opposite of previous, then label is highlighted to show possible bull/bear condition.
6. If current candle live price is below previous midpoint, a BEAR label is shown
7. If current candle live price is above previous midpoint, a BULL label is shown
I personally use the indicator on Daily/Weekly/Monthly charts to help with my overall market assessment. However users may find their own use for the indicator...or modify it to their own preferences.
As ever, the indicator should only be used with live trading accounts after thorough backtesting using a large data range.
1. Previous candle high/low and midpoint are displayed
2. Highlights current bar if INSIDE previous candle
3. Highlights current bar if POTENTIAL OUTSIDE bar. This condition uses the logic that if the previous high/low has been swept and price then reaches previous bar 50%, then an OUTSIDE bar is possible.
5. If above condition is true and current candle color is opposite of previous, then label is highlighted to show possible bull/bear condition.
7. If current candle live price is above previous midpoint, a BULL label is shown
I personally use the indicator on Daily/Weekly/Monthly charts to help with my overall market assessment. However users may find their own use for the indicator...or modify it to their own preferences.
As ever, the indicator should only be used with live trading accounts after thorough backtesting using a large data range.