Candle Size Alert (Open-Close)This Pine Script is a TradingView indicator that checks the size of the previous candle's body (difference between the open and close prices) and triggers an alert if it exceeds a certain threshold.
Breakdown of the Script
1. Indicator Declaration
//@version=5
indicator("Candle Size Alert (Open-Close)", overlay=true)
//@version=5: Specifies that the script is using Pine Script v5.
indicator("Candle Size Alert (Open-Close)", overlay=true):
Creates an indicator named "Candle Size Alert (Open-Close)".
overlay=true: Ensures the script runs directly on the price chart (not in a separate panel).
2. User-Defined Threshold
candleThreshold = input.int(500, title="Candle Size Threshold")
input.int(500, title="Candle Size Threshold"):
Allows the user to set the threshold for candle body size.
Default value is 500 points.
3. Calculate Candle Size
candleSize = math.abs(close - open )
close and open :
close : Closing price of the previous candle.
open : Opening price of the previous candle.
math.abs(...):
Takes the absolute difference between the open and close price.
This gives the candle body size (ignoring whether it's bullish or bearish).
4. Check If the Candle Size Meets the Threshold
sizeCondition = candleSize >= candleThreshold
If the previous candle’s body size is greater than or equal to the threshold, sizeCondition becomes true.
5. Determine Candle Color
isRedCandle = close < open
isGreenCandle = close > open
Red Candle (Bearish):
If the closing price is less than the opening price (close < open ).
Green Candle (Bullish):
If the closing price is greater than the opening price (close > open ).
6. Generate Alerts
if sizeCondition
direction = isRedCandle ? "SHORT SIGNAL (RED)" : "LONG SIGNAL (GREEN)"
alertMessage = direction + ": Previous candle body size = " + str.tostring(candleSize) +
" points (Threshold: " + str.tostring(candleThreshold) + ")"
alert(alertMessage, alert.freq_once_per_bar)
If the candle body size exceeds the threshold, an alert is triggered.
direction = isRedCandle ? "SHORT SIGNAL (RED)" : "LONG SIGNAL (GREEN)":
If the candle is red, it signals a short (sell).
If the candle is green, it signals a long (buy).
The alert message includes:
Signal type (LONG/SHORT).
Candle body size.
The user-defined threshold.
How It Works in TradingView:
The script does not plot anything on the chart.
It monitors the previous candle’s body size.
If the size exceeds the threshold, an alert is generated.
Alerts can be used to notify the trader when big candles appear.
Tradingalerts
RSI & DPO support/resistanceThis indicator combines the Relative Strength Index (RSI) to identify overbought and oversold conditions with the Detrended Price Oscillator (DPO) to highlight support and resistance levels.
Unlike traditional indicators that display these metrics in a separate window, this tool integrates them directly onto the main price chart.
This allows for a more cohesive analysis, enabling traders to easily visualize the relationship between price movements and momentum indicators in one unified view.
How to Use It:
Identify Overbought and Oversold Conditions:
Look for RSI values above 70 to identify overbought conditions, suggesting a potential price reversal or pullback. Conversely, RSI values below 30 indicate oversold conditions, which may signal a potential price bounce or upward movement.
Analyze Support and Resistance Levels:
Observe the DPO lines on the main chart to identify key support and resistance levels. When the price approaches these levels, it can provide insights into potential price reversals or breakouts.
Combine Signals for Trading Decisions:
Use the RSI and DPO signals together to make informed trading decisions. For example, if the RSI indicates an overbought condition while the price is near a resistance level identified by the DPO, it may be a good opportunity to consider selling or taking profits.
Monitor Divergences:
Watch for divergences between the RSI and price movements. If the price is making new highs while the RSI is not, it could indicate weakening momentum and a potential reversal.
Set Alerts:
Consider setting alerts for when the RSI crosses above or below the overbought or oversold thresholds, or when the price approaches significant support or resistance levels indicated by the DPO.
Practice Risk Management:
Always use proper risk management techniques, such as setting stop-loss orders and position sizing, to protect your capital while trading based on these indicators.
By following these steps, traders can effectively utilize this indicator to enhance their market analysis and improve their trading strategies.
