EasyTradingSignals

Magic Candle

This indicator is very simple, but surprisingly effective, and I haven't found any mention of something similar, so here it is. I hope it helps you in your stock trading.

Someone made a comment in a trading room that the 8 am candle of the stock looked odd, so I quickly checked all the other stocks I had on my screen, and for all of them, the 8 am candle was just a little strange. What's more, is that the stock would often respond to the high and low values of that 8 am candle later on in the day. It turned out to be quite an important support and resistance level indicator for stocks which I've used in my trading ever since I discovered it.

After testing it out day after day on multiple stocks, I decided to write this indicator, which not only projects the high and low values of the 8 am candle, but also the previous day's closing price.

If you find that there's another "magic candle" out there for Forex or Crypto, please let me know!

You have the option to set the "magic candle" to another time, if you want to experiment with things.
Release Notes: The update now adds extension multiples of the opening candle (you can set it to whatever you want it to be).

https://i.imgur.com/GeEfkdW.png
Release Notes: Added more time intervals as requested by users.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Want to use this script on a chart?
Doing what I can to help people trade better. Past performance doesn't guarantee future results. Trade at your own risk. This is not financial advice, it is personal opinion, I'm not a financial adviser. I may have a stake in what I write about.

Comments

8 am in what time zone ??
+3 Reply
@TonyCampbell, My apologies, it's 8 am New York time for the broker location, for the NY Stock Exchange.
+1 Reply
Those candle prints are darkpool orders
+1 Reply
EasyTradingSignals UnknownUnicorn1946597
@UnknownUnicorn1946597, I guess that makes sense, and possibly also reveals to a degree what price levels large institutional buyers and sellers are comfortable with because of how it often later affects further price action around the same highs and lows.
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Badger01 UnknownUnicorn1946597
@UnknownUnicorn1946597, You ripper, ta, mate for the cracking link. Over three years & I've never heard of "Dark-Pools"
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how to use this indicator?
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Great work with this indicator. would anyone help to change color of previous day close? dark grey does not shine too much in dark background
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Yo working hard!
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can you help me in changing the time zone "Indian Standard Time" which is GMT +5:30. Indian Stock Exchanges work from 09:15 to 15:30. Thank you in advance
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