Candle Ratio Indicator
Platform: MT5 Type: Volatility Last update: September 21, 2024The Candle Ratio indicator measures the ratio that exists between the bullish and bearish candlesticks over the defined period of time.
It consists of two lines which are colorized red (smoother line) and green (sensitive line).
The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences. Let’s take a closer look at these inputs below.
Period – defines the period for calculation;
Smoothing period – defines the period of smoothing;
Method – defines the method of smoothing.
The formula for the Candle Ratio indicator:
The calculations of the Candle Ratio indicator are based on the following formula:
Up Candle
Up = close-open;
Dow n= 0;
Down Candle
Down = open-close;
Up = 0;
Ratio = Sum(Up) / Sum (Down);
How to use the Candle Ratio indicator:
The signals provided by that gauge are simply crossover, and it looks as follows. The price is considered to be bullish when the green line cross above the red line. Similarly, the price is considered to be bearish when the green line cross below the red line.
We do not recommend using that gauge as a standalone trading tool. Rather use it in conjunction with some other technical analysis forex indicators.
