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.
