In my price action trading principles, I normally classify the candles into four types and look for trade opportunities. The candles are classified based whether buyers or sellers is dominating, namely, Indecisive candles, Decisive candles, Counter decisive candles and Strong decisive candles. Each of these can either be buyers or sellers dominant. This Philosophy I have attempted to convert into pine script for all traders to analyze and trade.
Indecisive candles: When the strength of the candle cannot be decided and we cant take any decision. Best is stay away. Something similar to conventional . Even though the strength is undecided, still the advantage can be towards either buyers or sellers favor. so we have Indecisive buy and indecisive sell candle
Decisive candles: When the strength is tipped towards the buyers or sellers, then I call Decisive bull or Decisive sell. This candles can be used to pyramid the trade position and not for initiating the trade, as many times it could be climatic also.
Counter decisive candles: These are candles , when the initial decision was towards one side and before closing of the candle, the decision was countered by the other side. There are counter decisive buy and sell. Counter decisive buy is actually a sell signal, because first buyers showed the strength later sellers overcome the buyers and become strong. Similarly counter decisive sell is a buy signal. These can be coupled with decisive candles for initiating the trading position
Strong decisive candles: These candles are good for initiating trade as a standalone alert system. It is something similar to , but more precise. we have both buy and sell and they have strong tendency to move in the direction of alert. These candles at right levels form a profitable trading system.
How the inputs are arranged:
There are total 8 candle types and whichever trader want can be selected for display.
The indecisive and decisive bull signals are placed on top of the charts as square and round green signal with title "IDB" and "DB"
The indecisive and decisive bear signals are placed on bottom of the charts as square and round red signal with title "IDS" and "DS"
The counter decisive and strong decisive signals are placed on the top and bottom of the candles.
In addition, the first candle of the day in any intraday time frame carries the label to display what type of candle is formed. This is very useful for making intraday trading.
This can be used freely by clicking to favorites. Source code is however not shared. please do contact for any additional info or modification.