Discussing the article: "Price Action Analysis Toolkit Development (Part 33): Candle Range Theory Tool"
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Check out the new article: Price Action Analysis Toolkit Development (Part 33): Candle Range Theory Tool.
Upgrade your market reading with the Candle-Range Theory suite for MetaTrader 5, a fully MQL5-native solution that converts raw price bars into real-time volatility intelligence. The lightweight CRangePattern library benchmarks each candle’s true range against an adaptive ATR and classifies it the instant it closes; the CRT Indicator then projects those classifications on your chart as crisp, color-coded rectangles and arrows that reveal tightening consolidations, explosive breakouts, and full-range engulfment the moment they occur.
olatility is the market’s primary language. Before any oscillator turns, before most trend-following filters react, price has already expressed a clear opinion through the simple distance it travels within a single bar. A sudden range expansion often indicates aggressive participation from large players; a prolonged contraction suggests liquidity is being withdrawn anticipating the next move. Likewise, a bar that stays entirely inside its predecessor reveals temporary indecision, whereas a bar that engulfs the previous range reflects decisive order-flow. These behaviors are apparent yet rarely formalized into a robust, machine-readable process.
This article presents Candle-Range Theory (CRT), a concise framework that classifies every completed candle into one of four mutually exclusive categories:
Author: Christian Benjamin