OPEN-SOURCE SCRIPT
LiquidityPulse RSI Candle Strength Momentum
Liquidity-Pulse RSI Candle Strength Momentum is a multifunctional and original candle-analysis tool designed to highlight the potential internal strength of each candle using a combination of body size and volume.
To view the candle-strength scores clearly: right-click on the chart, go to Settings, and in the Symbol tab untick Body, Borders and Wicks.
Candle Strength Scores
The indicator calculates the average body size and average volume over a user-defined lookback period. Each candle is then compared to these averages, and the indicator combines relative body expansion and relative volume expansion with a square-root calculation to create a (normalised) candle-strength score from 1 to 10.
10 – exceptionally strong compared to the lookback average (large body size and volume)
1 – very weak compared to the lookback average (small body size and volume)
Bullish and bearish candles are evaluated independently, producing separate bull-strength and bear-strength scores.
Optional ATR and volume floors can be enabled to restrict strength scoring to candles that exceed a minimum volatility or participation threshold. This helps users who prefer to filter out low-impact candles during quiet market periods. This option can be enabled or adjusted in the settings but is turned off by default.
Candle Colours
This tool also shows candles coloured based on the candle-strength scores (10 colours in each theme), which makes it easier to visualise the scores and see whether the candle score was high or not. There are several options in the 'colour theme' dropdown menu in the settings. Users can also customise all colours manually.
RSI Candle Strength Arrows
The Relative Strength Index is a long-established momentum tool that calculates the ratio of average upward moves to average downward moves over a defined period, allowing traders to identify potential overbought and oversold market conditions where momentum may be stretched. As well as this, strong early momentum and participation are often associated with more sustained moves.
This indicator combines this methodology and provides optional arrows that appear only when candle strength and RSI conditions align:
– A candle meets or exceeds a chosen strength threshold
– RSI has recently reached an overbought or oversold level
– The candle direction matches the expected momentum shift
For example, if price has reached an oversold RSI level and a strong bullish candle forms (high candle-strength number), an upside arrow may plot.
Users can customise the RSI oversold and overbought thresholds, the minimum candle-strength threshold, and how many bars back the RSI condition must have occurred in the settings.
These arrows are not buy or sell signals but instead highlight rare moments where strong candle behaviour aligns with meaningful RSI extremes. This is useful to users because it allows the candle-strength logic to be applied only when momentum is genuinely stretched, filtering out noise and focusing attention on the most statistically significant market moves.
This indicator brings together a quantitative candle-strength model and a momentum-based RSI filter to give users a clearer view of how individual candles behave relative to their recent environment, while also highlighting when those movements occur during meaningful shifts in market momentum. By combining both forms of analysis, the tool helps traders distinguish ordinary price changes from potentially significant structural behaviour.
How traders can use this indicator
– Stronger candle scores in the trend direction can confirm continuation pressure.
– Powerful opposing candles appearing at RSI extremes may signal potential reversals or exhaustion points.
– If breakouts occur with high candle scores, price may be more likely to follow through.
– Weak candles with low scores help traders avoid false signals or low-quality setups.
– Candle-strength scoring helps users quickly interpret both volume and candle-body behaviour without manual analysis.
Open source, if anyone has any ideas on how to make the script better or have any questions please let me know :)
Disclaimer
This indicator is provided for educational and analytical purposes only and should not be interpreted as financial advice or a recommendation to buy or sell any asset. The candle-strength values displayed by this tool are not literal or definitive measures of market strength; they are derived from a custom mathematical model designed to highlight relative differences in candle behaviour. These values should be viewed as a simplified representation of candle dynamics, not as an objective or universal measure of strength.
Users should be aware that this calculation does not replace the importance of analysing real traded volume, order flow, liquidity conditions, or broader market context. As with any technical tool, results should be considered alongside other forms of analysis, and past performance does not guarantee future outcomes. Use at your own discretion and risk.
To view the candle-strength scores clearly: right-click on the chart, go to Settings, and in the Symbol tab untick Body, Borders and Wicks.
Candle Strength Scores
The indicator calculates the average body size and average volume over a user-defined lookback period. Each candle is then compared to these averages, and the indicator combines relative body expansion and relative volume expansion with a square-root calculation to create a (normalised) candle-strength score from 1 to 10.
10 – exceptionally strong compared to the lookback average (large body size and volume)
1 – very weak compared to the lookback average (small body size and volume)
Bullish and bearish candles are evaluated independently, producing separate bull-strength and bear-strength scores.
Optional ATR and volume floors can be enabled to restrict strength scoring to candles that exceed a minimum volatility or participation threshold. This helps users who prefer to filter out low-impact candles during quiet market periods. This option can be enabled or adjusted in the settings but is turned off by default.
Candle Colours
This tool also shows candles coloured based on the candle-strength scores (10 colours in each theme), which makes it easier to visualise the scores and see whether the candle score was high or not. There are several options in the 'colour theme' dropdown menu in the settings. Users can also customise all colours manually.
RSI Candle Strength Arrows
The Relative Strength Index is a long-established momentum tool that calculates the ratio of average upward moves to average downward moves over a defined period, allowing traders to identify potential overbought and oversold market conditions where momentum may be stretched. As well as this, strong early momentum and participation are often associated with more sustained moves.
This indicator combines this methodology and provides optional arrows that appear only when candle strength and RSI conditions align:
– A candle meets or exceeds a chosen strength threshold
– RSI has recently reached an overbought or oversold level
– The candle direction matches the expected momentum shift
For example, if price has reached an oversold RSI level and a strong bullish candle forms (high candle-strength number), an upside arrow may plot.
Users can customise the RSI oversold and overbought thresholds, the minimum candle-strength threshold, and how many bars back the RSI condition must have occurred in the settings.
These arrows are not buy or sell signals but instead highlight rare moments where strong candle behaviour aligns with meaningful RSI extremes. This is useful to users because it allows the candle-strength logic to be applied only when momentum is genuinely stretched, filtering out noise and focusing attention on the most statistically significant market moves.
This indicator brings together a quantitative candle-strength model and a momentum-based RSI filter to give users a clearer view of how individual candles behave relative to their recent environment, while also highlighting when those movements occur during meaningful shifts in market momentum. By combining both forms of analysis, the tool helps traders distinguish ordinary price changes from potentially significant structural behaviour.
How traders can use this indicator
– Stronger candle scores in the trend direction can confirm continuation pressure.
– Powerful opposing candles appearing at RSI extremes may signal potential reversals or exhaustion points.
– If breakouts occur with high candle scores, price may be more likely to follow through.
– Weak candles with low scores help traders avoid false signals or low-quality setups.
– Candle-strength scoring helps users quickly interpret both volume and candle-body behaviour without manual analysis.
Open source, if anyone has any ideas on how to make the script better or have any questions please let me know :)
Disclaimer
This indicator is provided for educational and analytical purposes only and should not be interpreted as financial advice or a recommendation to buy or sell any asset. The candle-strength values displayed by this tool are not literal or definitive measures of market strength; they are derived from a custom mathematical model designed to highlight relative differences in candle behaviour. These values should be viewed as a simplified representation of candle dynamics, not as an objective or universal measure of strength.
Users should be aware that this calculation does not replace the importance of analysing real traded volume, order flow, liquidity conditions, or broader market context. As with any technical tool, results should be considered alongside other forms of analysis, and past performance does not guarantee future outcomes. Use at your own discretion and risk.
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.
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.
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.