Indecisive Candles

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An Indecisive Candle, often referred to as a Base Candle, is a pivotal element in technical analysis, particularly for identifying institutional supply and demand zones. These candles are characterized by their small bodies and long wicks, reflecting a balance between buyers and sellers, indicating a potential pause or consolidation in the market.

To calculate whether a candle qualifies as an indecisive candle based on the criterion that its body (the absolute difference between its open and close prices) is less than or equal to 50% of the total range of the candle (the difference between its high and low prices).
Key Features:

Small Real Body: Signifies minimal movement from open to close, indicating market indecision.
Long Upper and Lower Wicks: Show that both bulls and bears attempted to control the price, but neither succeeded, leading to a standoff.
Formation Context: Typically found at the end of a strong trend or within a consolidation phase, hinting at a potential reversal or continuation pattern.
Usage in Identifying Institutional Supply and Demand:

Supply Zones: When an Indecisive Candle forms after a rally, it can mark the onset of an institutional supply zone, suggesting that large entities are starting to sell, leading to potential downward pressure.
Demand Zones: Conversely, when this candle appears after a downtrend, it often signals the emergence of a demand zone, where institutions begin to accumulate, anticipating a price increase.
Trading Strategies:

Zone Identification: Use Indecisive Candles to pinpoint key supply and demand zones on your chart, enhancing the accuracy of your support and resistance levels.
Confirmation: Look for confirmation from subsequent price action or volume spikes to validate the presence of institutional activity before making trading decisions.
Risk Management: Place stop-loss orders beyond the wicks of these candles to protect against false breakouts or continued indecision.
Conclusion:
Indecisive Candles are essential tools for traders looking to understand market sentiment and institutional behavior. By mastering their identification and interpretation, you can enhance your ability to spot high-probability trading opportunities and manage risks effectively.

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Phát hành các Ghi chú

Removed Wick and Boader

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Phát hành các Ghi chú

Added feature to find Gaps between price close and open, which the price will fill eventually.

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Phát hành các Ghi chú

Added option to customize bullish and bearish indecisive candles in separate colors.

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Phát hành các Ghi chú

Updated the Gap identification method:
If the current candle opens higher than the previous close and doesn’t overlap with the previous candle’s range, it marks this as a gap-up.
If the current candle opens lower than the previous close without overlap, it’s marked as a gap-down.

Drawing the Gap:
When a gap-up or gap-down is found, the script draws a box from the previous close to the current candle’s low or high, filling it with the chosen color.

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Phát hành các Ghi chú

Added wick and boarder color selection option

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Phát hành các Ghi chú

Edited the default colors. If you wish to remove the wick and border just make the opacity to '0' for both.

If you wish to make the indecisive candles to look hollow candle:
Edit the candle colors in the indicator to the same as your background color of your chart with borders enabled in your Tradingview default chart and the indicator's border color opacity to '0'

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Phát hành các Ghi chú

Updated to Version 6

28 thg 11

Phát hành các Ghi chú

Updated the default colors