Up To Down Candle Ratio
Statistical probability can be quite profitable, as I've both seen and proven. One of the most basic (yet powerful) numbers that you can have is to check and see the amount of up candles vs down candles in the current chart. I've used this in my trading quite a bit -- it allows me to see when a pair has moved too far in one direction, or if we are in a "sideways" consolidating market. I hope this indicator is as valuable to you as it has been to me!
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Hi Jason,
Good stuff! So nice to see all material explained this way, really cool. Now considering this indicator, like what youve done with other oscillators etc.. would it be possible to create a background colouring based on the indicator that woudl show areas of consolidation versus breakout/trend?
Tnx,
Kr. AD
Yes, we can do that to some degree. Due to lagging indicators, breakouts from consolidation does lag by two bars on average.
Good trading,
Jason Fielder