Candle Direction Edge

Candle Direction Edge — Similarity & Streak Edge Indicator

Candle Direction Edge is a statistical analysis indicator that breaks down every candle into a measurable fingerprint and searches history to find the closest matches — giving you data-driven insight into what has tended to happen next.

How it works

Every candle is reduced to five measurable characteristics: body ratio, upper and lower wick size, close position within the range, and volatility relative to ATR. This creates a unique fingerprint for each bar. The indicator then scans the last 1,000 candles to find the closest historical matches and calculates the statistical tendency for the next bar to either reverse or continue.

Two models in one

The Candle Similarity Model finds candles in history that are structurally identical to the current one and reports how often price reversed or continued after those setups, along with the average size of each move.

The Candle Streak Model tracks consecutive bullish or bearish closes and analyses what historically happened after streaks of the same length. A confidence rating (High / Medium / Low) is displayed based on the number of historical samples found, so you always know how much weight to give the signal.

What you see on the chart

• Pink circles mark every historically similar candle directly on your chart so you can visually verify the matches yourself
• A red projection box shows where price typically closed when it reversed, sized by the average historical reversal move
• A green projection box shows where price typically closed when it continued, sized by the average historical continuation move
• A clean on-chart statistics table displays reversal percentage, continuation percentage, average move sizes, streak length, sample count and model confidence — all updating automatically on each new bar

Key features

• Works on any symbol and any timeframe
• No repainting — all calculations are based on closed bars only
• Fully configurable lookback period, number of matches, and similarity threshold
• Each component (similarity model, streak model, boxes, table, circle markers) can be toggled on or off independently
• Free to use — no subscription, no unlock code

Important note

This indicator does not predict the future. It surfaces historical statistical tendencies to help you make more informed decisions. Even the strongest signals carry meaningful uncertainty. Always use this tool as one input within a broader trading plan and never risk more than you can afford to lose.