fractal candle

The fractal candle technical indicator to identify potential trend reversals in financial markets. It works by counting a series of price bars and looking for specific patterns that indicate when a trend is likely to reverse.

How the Indicator Works:
Counting Candles:

The indicator compares the closing price of the current candle with the closing price from 4 candles ago.
If the current close is higher, the bullish (buy) count increases.
If the current close is lower, the bearish (sell) count increases.
When a count reaches 9 or 13, it may signal a trend reversal.
Buy and Sell Setup:

A buy setup occurs when there have been 9 consecutive candles where each close is lower than the close 4 candles before. This suggests a possible bullish reversal.
A sell setup occurs when there have been 9 consecutive candles where each close is higher than the close 4 candles before. This suggests a possible bearish reversal.
Support and Resistance Levels:

The indicator tracks previous highs and lows during buy/sell setups to identify potential support and resistance levels.
These levels can help traders decide where price might reverse or consolidate.
Candle Coloring for Visual Aid:

The script changes candle colors:
Red for sell signals 📉
Green for buy signals 📈
Different shades for overshoot conditions (extended trends)