OPEN-SOURCE SCRIPT
Nested Candle Highlighter @shrilss
Updated
The Nested Candle Highlighter identifies when the current candle's body is completely enclosed by the previous candle's wick zones. It examines the upper wick zone, from the previous high to the open or close, and the lower wick zone, from the low up to the open or close. This focused analysis can signal consolidation and potential shifts in momentum, offering an insightful addition to your trading analysis.
Release Notes
Added toggle to only highlight nested candles that the previous candle upper wick is longer than the lower or vice versa. Default settings are the old version.Release Notes
Fixed it to highlight bars inside of the previous wick that have an equal open the the previous close.Release Notes
+ Added lines and labels giving users the information they need to use this script.~ Make sure to wait for the nested candle close to confirm, place a stop and expect it to be hit within 2 bars, if not remove it and watch how price reacts. if broken within 2 bars expect at least 2 bars to the upside or downside.
Release Notes
~ Typo FixRelease Notes
Made it so that conditions are met only after a candle has closed.Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
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