OPEN-SOURCE SCRIPT
YTC Candlestick Sentiment
My recent discovery in terms of trading learning materials is "YTC Price Action Trader" book. It contains numerous invaluable clues, which I couldn't find anywhere else.
One YTC chapter covers Candle Sentiment analysis. Watching where 'close' of the candle happens can give early hints about future market action. Most of time you get those hints before the indicators provide it.
So there are two ways to look at candles:
1. Close Sentiment
This is single-candle analysis. Divide entire range of a candle (low to high) into 3 equal parts. The candle is:
- "High Close" - if 'close' is in the upper 1/3
- "Mid Close" - if 'close' is in the middle 1/3
- "Low Close" - if 'close' is in the lower 1/3
This is illustrated by the blue plot on "YTC Candlestick Sentiment" indicator.
2. Close Comparison
Compare position of 'close' with entire range of the previous candle. The candle is:
- Bull Candle - if 'close' is above 'high' of the previous candle
- Range Candle - if 'close' is between 'high' and 'low' of the previous candle
- Bear Candle - if 'close' is below 'low' of the previous candle
This is illustrated by the background on "YTC Candlestick Sentiment" indicator.
What can you do with this? It gives very good and early reversal hints. Mid/ranging signals should be considered "no signals" - in other words: market will continue in the same direction.
This indicator should be used as confirmation to other signals (as a standalone YTC Candlestick Sentiment produces too many reversal signals).
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Forex / Indices / Commodities traders who want to start AUTO-TRADING might want to take a look at tradingconnector.com, which allows no-latency trades execution from TradingView to MT4.
One YTC chapter covers Candle Sentiment analysis. Watching where 'close' of the candle happens can give early hints about future market action. Most of time you get those hints before the indicators provide it.
So there are two ways to look at candles:
1. Close Sentiment
This is single-candle analysis. Divide entire range of a candle (low to high) into 3 equal parts. The candle is:
- "High Close" - if 'close' is in the upper 1/3
- "Mid Close" - if 'close' is in the middle 1/3
- "Low Close" - if 'close' is in the lower 1/3
This is illustrated by the blue plot on "YTC Candlestick Sentiment" indicator.
2. Close Comparison
Compare position of 'close' with entire range of the previous candle. The candle is:
- Bull Candle - if 'close' is above 'high' of the previous candle
- Range Candle - if 'close' is between 'high' and 'low' of the previous candle
- Bear Candle - if 'close' is below 'low' of the previous candle
This is illustrated by the background on "YTC Candlestick Sentiment" indicator.
What can you do with this? It gives very good and early reversal hints. Mid/ranging signals should be considered "no signals" - in other words: market will continue in the same direction.
This indicator should be used as confirmation to other signals (as a standalone YTC Candlestick Sentiment produces too many reversal signals).
*********
Forex / Indices / Commodities traders who want to start AUTO-TRADING might want to take a look at tradingconnector.com, which allows no-latency trades execution from TradingView to MT4.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
I auto-execute TradingView Alerts into MT4/MT5 using this: tradingconnector.com 1-second delivery. Ping me if you need support with installation.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
I auto-execute TradingView Alerts into MT4/MT5 using this: tradingconnector.com 1-second delivery. Ping me if you need support with installation.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.