How to use Candle Range Detector – Fibo-Based Volatility mapping🧠 Concept Overview
The Candle Range Detector (CRD) visualizes how market volatility expands and contracts across time.
Instead of using a static multiplier, it applies Fibonacci ratios (0.618, 1.0, 1.618, 2.618, etc.) to dynamically scale candle ranges, helping traders spot where price might react or exhaust.
Each detected candle range forms a zone or band representing potential continuation or reversal interest areas.
This adaptive approach captures market rhythm more naturally than uniform multipliers.
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⚙️ How It Works
1. Range Detection:
The indicator measures the true range (high–low) of key candles and maps them forward on the chart.
2. Fibonacci Expansion Logic:
Instead of a normal “x times range” multiplier, Fibonacci levels are used to project natural extensions and contractions from each candle’s body or wick.
3. Zone Formation:
Each candle’s range forms a rectangular area (as shown on your chart).
• Thicker Boxes: Represent strong impulsive candles or high-volume bars.
• Lighter Boxes: Represent pullback or resting candles.
4. Automatic Overlap Handling:
When two zones overlap, the indicator visually merges them, highlighting confluence where multiple candle ranges align — a sign of strong market memory.
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📊 How to Interpret
• When price revisits a previously detected Fibonacci expansion zone, it often reacts (pause or reversal).
• A cluster of zones at similar levels acts like a dynamic supply/demand region.
• Breakouts beyond upper/lower Fibonacci bands may indicate trend continuation.
• Tight clusters of small ranges suggest compression – potential breakout setup.
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💡 Practical Use-Cases
• Identify where short-term volatility clusters before big moves.
• Spot pullback re-entries aligned with prior expansion zones.
• Detect imbalance areas that later act as resistance/support.
• Enhance confluence with volume, VWAP, or order flow indicators.
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🧩 Customization Tips
• Fib Ratios: You can select or deselect Fibonacci levels from the settings panel. Right now its set to 1.618
• Zone Opacity: Adjust transparency to visualize overlaps better.
• Lookback Range: Control how many historical ranges are plotted for context.
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🏁 Summary
The Candle Range Detector (Fibonacci Mode) transforms traditional range analysis into a visual map of volatility zones.
By using Fibonacci expansion instead of arbitrary multipliers, it synchronizes with natural market rhythm and highlights where liquidity and volatility converge.
