Average Candle Body (24h Rolling)

This indicator calculates the average size of candle bodies (|Close – Open|) over the last 24 hours, regardless of your current chart timeframe.

Unlike ATR or ADR, which measure total range (High – Low) or day-to-day volatility, this tool focuses purely on the real body size of candles — a more accurate representation of in-session price momentum and liquidity activity.

🔍 How it works

The script automatically determines how many candles represent the last 24 hours based on your current timeframe (e.g. 288 candles on a 5-minute chart).

It then computes a Simple Moving Average (SMA) of the absolute candle body size across that rolling 24-hour window.

Optionally, the script also plots the current candle body size as a grey histogram for quick comparison.

⚙️ Use cases

Gauge intraday volatility based on average body movement rather than wicks.

Build dynamic stop-loss models (e.g., Stop = 1.2 × AverageBodySize).

Detect periods of compression or expansion in price action.

Filter or confirm setups (e.g., only trade when candle bodies exceed their 24 h average).

📈 Displayed elements

Orange line: average candle body size (rolling 24 hours)

Grey histogram: current candle body size for each bar

Works automatically across all timeframes and assets (crypto, forex, indices, etc.)

💡 Pro tip

This indicator pairs exceptionally well with:

EMA-based momentum systems (e.g. EMA 8/21 crosses)

Session-based reversal or sweep strategies (Asia-London transitions)

VWAP or liquidity-based frameworks where candle compression matters

📘 How to Interpret

When the orange line (24h average candle body) is rising, it indicates that average body sizes are expanding — signaling increasing intraday momentum and participation. This often aligns with periods of higher volatility, stronger trends, or major session opens (London/New York).

When the orange line is falling, it shows contracting body sizes, meaning the market is entering consolidation, reduced volatility, or indecision. Such periods often precede major breakouts or reversals.

Use this reading to:

Avoid false breakouts during low-body periods.

Tighten or widen stops based on real-time market compression or expansion.

Confirm reversals: a shrinking average body after a strong impulse can signal momentum exhaustion.