MT4 "Candle Strength" Indicator

Analyzing candlesticks is a fundamental part of chart analysis. There is so much you can learn from the candlesticks, and you can get clues about the direction of the market and also important price ranges that may exist.

This MT4 indicator is useful for analyzing candlestick charts. By using this indicator, you can easily see the strength of each candlestick.

The indicator plotted on the EURUSD hourly chart. You can see the strength of each candlestick.

This indicator displays the difference between the closing price and the opening price of each candle in the subwindow below the main chart. If the closing price and opening price are the same, the indicator’s value is zero. When using it, it is a good idea to set thresholds and levels for ease of use.

Tips on how to use:

If the value of the indicator is abnormally high, you may want to try taking a contrarian position. It can be considered that the indicator is overbought if the values are too high. An example of an abnormally high value is indicated by the arrow in the image below. However, please also be careful in such situations because the numerical value can easily reach an abnormal value during times of news releases.
This indicator is also useful for grasping the market volatility to determine times when the price is intense . If the indicator’s value is much higher than than the usual recent values, it is evidence of high volatility and possibly overbought/oversold conditions.

MT4