Main Ideas Incorporated in the Code

1. Candle Size Calculation :

   • The indicator measures the amplitude of the candles (difference between high and low) and displays the value in points or pips.
   • Different colours are used to distinguish bullish and bearish candles, making visual interpretation easier.

2. Customisation by Day of the Week :

   • Allows you to process candles from a specific day of the week (e.g. Monday, Tuesday, etc.) or every day.
   • It assigns unique colours to each day of the week, making it easy to observe daily patterns.

3. Dynamic Text Positioning :

   • Text can be moved vertically in relation to the candle to avoid overlapping with other chart elements.
   • Automatically adjusts the position of the text to remain within the visible limits of the chart.

4. Style and Formatting :

   • The user can customise the font, font size, colour and anchor type of the text.
   • Supports different line styles (e.g. dashed, dotted) for better visualisation.

5. Automatic Cleaning :

   • When detaching the indicator from the chart, all objects created are automatically removed to keep the chart clean.

Description of External Variables

All the user-configurable external variables are described below:

Recommended Instruments and Timeframes

• Instruments : This indicator can be used with any financial instrument available on the MetaTrader 5 platform, including currency pairs, indices, commodities and cryptocurrencies.
• Timeframes : It works on all timeframes, from 1-minute charts to weekly charts. However, it is recommended to use larger timeframes (e.g. H1, D1) to get a clearer and more accurate analysis of volatility.

Indicator interpretation

1. Candle size :

   • A larger candle indicates greater volatility during the period.
   • A smaller candle suggests less activity or consolidation in the market.

2. Colours :

   • Bullish candles are displayed in a specific colour (e.g. gold).
   • Bearish candles are displayed in another colour (e.g. grey).

3. Days of the week :

   • Assigning different colours to each day of the week allows you to observe patterns in price behaviour on specific days.

Example of Practical Use

• Volatility Analysis : Helps traders identify days or periods with higher volatility based on the size of the candles.
• Daily Patterns : Processing candles from a specific day allows you to observe patterns of price behaviour on specific days.
• Decision Making : Provides quick visual insights into the strength of bullish and bearish movements, helping you make trading decisions.

Illustrative images

Figure 1: Example chart with the indicator applied. The colours differentiate bullish and bearish candles, while the text displays the size of each candle.