Big candles

This tool identifies "big" candles. Whether a candle is big or not can be decided by using the average true range (ATR). The ATR indicates the volatility of an instrument. The trader can take the ATR over, for example, 20 periods and request the platform to highlight those candles which are bigger than, for example, 2 times the ATR.

 

Trader Erdal Cene uses big candles, which he calls monster candles, to help him determine the progress of a trend.

If in an uptrend a big red candle occurs it is an indication for him that the regression is finished and the next progression arm of the ZigZag is about to start. So traders should consider placing buy orders.

Erdal Cene does not specify a rule to identify big candles. Being very experienced he identifies them visually. The big candles tool in the platform identifies big candles for you.


This example shows a 60-minute chart on the DAX. The one candle which is considered a big candle is automatically highlighted by the big candle tool.