Candle Body Size Indicator

The Candle Body Size Indicator is a straightforward tool that displays the body size of each candlestick on the activity chart. The size of the candle shows market volatility. The indicator displays in the main chart window of MT4. The indicator does not produce any buy or sell signals, you may want to use it in conjunction with other technical indicators.

What is the Candle Body Size Indicator?

The Candle Body Size is not a complex Indicator. When you add it to a Metatrader 4 chart, the indicator displays the body size data for each candle. Blue numbers represent bullish candlestick body sizes, while red numbers represent bearish candlestick body sizes. The body of a candle is defined as the difference between the Open and Close values. For a bullish candlestick, the difference between High and Close is referred to as the upper shadow, and the difference between Open and Low is referred to as the lower shadow. The same is true for a bearish candle, but only in reverse.

Setting up the Candle Body Size Indicator
Setting up the Candle Body Size Indicator

Candle Body Size Strategy

The Candle Body indicator, as the name suggests, displays the size of each candle’s body. Each bearish candle has the nominal size placed beneath it, and each bullish candle has the nominal size placed above it. The Candle Body Size Indicator is very straightforward. In reality, it only adds basic statistical data to the chart. Is it applicable to forex trading? Yes. Consider this: the High and Low values can show extreme price values that were only fair for a fraction of a second for one or two trades. And the Open and Close values reflect the majority of market participants’ consensus movement. This is why the size of the candlestick body should be given more consideration. For example, if the candlestick body is large, it can be interpreted as one side having a significant advantage over the other. With this information, you may already create a forex trading strategy. The traders would have to use their strategies for trade entries and exits.

Buy Signal

This could be your checklist for a buy trade:

  • When your strategy aligns with the information given by the Candle Body Size Indicator for a BUY trade.

Once this event occurs:

  • You could open a buy position after you confirm your entry with bullish candlestick patterns.
  • You could set your stop loss just below the nearest swing low.
  • You could set your take profit at the nearest resistance zone, or you could exit trade based on your strategy’s exit plan.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Candle Body Size Indicator Buy Setup
Candle Body Size Indicator Buy Setup

Sell Signal

This could be your checklist for a sell trade:

  • When your strategy aligns with the information given by the Candle Body Size Indicator for a SELL trade.

Once this event occurs:

  • You could open a sell position after you confirm your entry with bearish candlestick patterns.
  • You could set your stop loss just above the nearest swing high.
  • You could set your take profit at the nearest support zone, or you could exit trade based on your strategy’s exit plan.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Candle Body Size Indicator Sell Setup
Candle Body Size Indicator Sell Setup

Candle Body Size Pros & Cons

Pros

  • The Candle Body Size Indicator may help hint what the buying or selling pressure is in the market.
  • This indicator may be used by traders who pay very close attention to candlestick sizes for their technical analyses.

Cons

  • The indicator, in itself, do not give trade entry or exit signals.
  • The Candle Body Size Indicator may require the trader to have an already existing strategy.

Conclusion

The Metatrader Candle Body Size Indicator displays the difference between the Open and Close prices for bullish and bearish candles. This information is not adequate to make trading judgments, but it can offer useful ideas for technical traders.

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