8020 Momentum and Pin Candle

GLENMARK PHARMNSE

詳細

⋅ 2020年7月23日午後5時47分

We know the 80-20 Rule works very well in real life. It works well in technical analysis and price action as well.

This script identifies strong or momentum candles applying the rule body should be 80% or more of the range This is 80% body and 20% shadow.

Then there are pin candles where there is a 80% shadow and open and close is in one extreme and body is 20% or less.

If we can trade these 8020 candles effectively our trading will improve dramatically.
Use Momentum Candles for entry, stop loss, watching follow through etc
Use Pin Candles to look for reversals.
Works best in direction of trend.
In bullish market, green momentum candles are more powerful and pin candles after retracement is more powerful and vice versa.

リリースノート

⋅ 2020年7月23日午後6時15分

Minor changes

リリースノート

⋅ 2020年7月24日午後2時47分

Added one more condition if range of momentum candle is twice previous bar then red star above the bar

Nimishshah

⋅ 2022年5月11日午前3時41分

Greets ,

Thanks a lot for sharing the source code on trading view .
would laud your guidance on your preferred way to trade this indicator and what does the red and blue stars indicate and how to use these stars in 5 min chart for intraday

Thanks

Balakrishna_Shenoy

⋅ 2022年5月12日午前3時37分

@Nimishshah, Blue star means that candle is a momentum candle (small wicks and body >80% of the candle range).
Red star means that the candle is double or more than the range of the previous candle. So candle with red star is more powerful than candle with just blue star.
For example 10:00 AM candle range is 10 points and 10:05 candle is 16 points with 14 points body, then only blue star will appear.
Same example if 10:05 candle was 21 points with body > 16 points then red star will be marked (because range of 10:05 candle is twice or more than the 10:00 Candle.
Hope it clarifies.
You can use it in any time frame rules are same. Smaller time frames (5 mins and below) will require scalping kind of execution while longer time frames like 1 hour will be more reliable.

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