TheStrat Candles Indicator
As price evolves over time, a candle can switch between three states. When the candle first opens, if it sits completely within the previous candles high and low, then it will start as a Type 1. As time moves on, if it breaks either the high or low of the previous candle, it will be come a type 2, and should the price action be volatile and directionless, it may then break the opposite side of the previous candle and become a type 3.
To make it easier to see on your chart, this indicator will draw a label above or below each candle based on Rob Smith's TheStrat as they develop over time on your chart.
Types of Candle:
Each candle is defined by its relationship to the previous candle. A group of candles can make a tradable pattern. See the Patterns Indicator for more details.
Type 1 - Inside candle - The candle is entirely within the high and low of the previous candle. An inside candle shows the market is at a point of indecision.
Type 2 - Trending candle - The candle extends above or below either the High or low, but not both, of the previous candle.
Type 3 - Outside candle - The candle has broken both the high and low of the previous candle. An outside candle shows price is broadening, producing higher highs and lower lows on a lower timeframe.
The indicator is configurable, allowing you to choose which types of candle you wish to be labelled, and how they should be displayed. Works with any symbol, and with configuration, will display nicely on any chart.
Have a look at the screenshots below for more details.
Purchase the Indicators for MetaTrader 4 and 5 here
In the image above, you can see just Type 1 (Inside) and 3 (Outside or Expansion) candles being labelled. That means all other candles are type 2 (Trending). The indicator provides configuration settings so you can control exactly how the indicator displays on your chart.
The image below shows the effect of the change in settings