Candle Range Theory for SeSe04

5. Nov.

Small Candle Theory — Automatic Detection of Micro-Retracements
📘 Description

The Small Candle Theory indicator automatically identifies market structures where a small candle forms within the range of a larger previous candle, highlighting potential momentum slowdown or local reversal areas.

This is a price action visualization tool, not a trading signal provider.

⚙️ Detection Conditions
📈 Bullish Signal

Candle 1: Large bearish candle

Candle 2: Small bullish candle

Candle 2 closes within the range of Candle 1
→ A blue triangle appears below the confirmation candle.

📉 Bearish Signal

Candle 1: Large bullish candle

Candle 2: Small bearish candle

Candle 2 closes within the range of Candle 1
→ A red triangle appears above the confirmation candle.

🧠 How to Use

This indicator does not generate buy/sell signals.
It highlights moments of reduced volatility that may precede a potential reversal or continuation, depending on market structure.

Best used:

In confluence with structure tools (support/resistance, order blocks, FVGs, etc.)

With strict risk management

On multiple timeframes

⚙️ Settings

No manual input is required.
Detection logic is automatic and works on any asset or timeframe.

🛎️ Alerts (optional)

You can create an alert in TradingView:
"Create Alert" → Condition: Small Candle Theory (Bullish or Bearish)
to receive notifications when a setup appears.

⚠️ Disclaimer

This script is for educational and analytical purposes only.
It does not constitute financial advice.
Trading involves the risk of losing part or all of your invested capital.

7. Nov.

Versionshinweise

Description (EN)

The Small Candle Theory indicator automatically detects when a small candle forms inside the range of a large previous candle, showing potential momentum slowdown or local reversal.

It’s a price action visualization tool, not a trading system.
Use it to spot range contractions before major moves.

Detection Logic
Bullish signal

Candle 1: large bearish candle

Candle 2: small bullish candle closing inside Candle 1’s range
→ Blue triangle below the bar.

Bearish signal

Candle 1: large bullish candle

Candle 2: small bearish candle closing inside Candle 1’s range
→ Red triangle above the bar.

Usage

Use this script to highlight volatility contraction and potential momentum shifts.
Best used with:

Liquidity zones, order blocks, FVGs, support/resistance

Multi-timeframe confluence

Proper risk management

No buy/sell signals provided.

⚙️ Settings

No inputs needed

Works on all assets and timeframes

Alerts

Create alert → Condition: Small Candle Theory (Bullish / Bearish)
to get notified when a pattern forms.

Disclaimer

This indicator is for educational and analytical purposes only.
No financial advice or guarantee of results.
Trading involves risk of losing part or all of your capital.

Tags

#priceaction #candlestick #pattern #tradingview #theory #scalping #analysis #education