Average Candle Body
Improve your price action analysis by measuring your Average Candle Body.
- Study and detect candlestick patterns (which very often necessitate the size of the body);
- Measure historical volatility, similarly to Average True Range (ATR);
- Avoid position entry and/or exit on false signals, by combining this indicator with other ones.
- Prices - Prices used to calculate the body's size: |Open - Close| or |High - Low|
- Resultant Unit - Unit of Output of Calculations. The percentage unit is measured in relation to the open price.
- Method - Averaging Method. The following are available:
- SMA - Simple Moving Average
- EMA - Exponential Moving Average
- SMMA - Smoothed Moving Average
- LWMA - Linear Weighted Moving Average
- JJMA - JMA Adaptive Average
- JurX - Ultralinear Smoothing
- ParMA - Parabolic Smoothing
- T3 - Tillson's Multiple Exponential Smoothing
- VIDYA - Smoothing with the use of Tushar Chande's Algorithm
- AMA - Smoothing with the use of Perry Kaufman's Algorithm
- Period - Sample Size used in the Averaging Method.
- Phase - Only used by the following methods. Each method has a different meaning for this parameter:
- For JJMA it is an external Phase variable changing from -100 to +100;
- For T3 it is a smoothing ratio multiplied by 100 for better visualization;
- For VIDYA it is a CMO period;
- For AMA it is a slow EMA period; AMA's fast EMA period is always 2 by default; The ratio of raising to the power is also 2.
- Horizontal Shift - Horizontal Shift, as shown in the chart. A horizontal shift of 0 means that there's no shift.
Enjoy and Evolve!