It is a type of indicator for metatrader 4 (mt4) that is used to calculate the Total body size of each candlestick on the chart in the unit of pips. Because the body of the candlestick shows the momentum of buyers and sellers.
It’s necessary to understand the candlestick before using this indicator.
What’s candlestick
Candlestick is a chart type that shows real-time opening, closing, high and low price values in a specific time interval. For a retail trader to technically analyze the market, reading the closing and opening price of the market is a very important part.
A candlestick consists of two elements combined together
- Body
- Wicks
The body is used to indicate the opening and closing price of the market. It also indicates the power of buyers or sellers.
Wick of the candlestick is used to indicate the high and low price of the market. It is necessary to analyze the currency technically.
What is momentum in a candlestick’s body?
Candlestick momentum represents the power of buyers or sellers of the market. When the closing price of a currency or asset is greater than the opening price then a bullish candlestick is formed. On the other hand, if the closing price is below the opening price of an asset then a bearish candlestick will form.
- Body of Bullish candlestick represents the momentum of buyers
- Body of bearish candlestick represents the momentum of sellers
A big body means more momentum in the market and a small body means less momentum.
How does mt4 candlestick size indicator work?
This candlestick body size indicator calculates the difference between the opening and closing price on the chart in the form of numbers. These numbers indicate the pips. For example, 10 means 10 pips.
In the case of the bearish candlestick, the number of pips will be shown below the candlestick. For bullish markets, the number of pips will be shown above the candlestick.
Conclusion
It’s the best indicator because it will help you to identify the momentum of buyers or sellers. So you can make good decisions while trading.
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