Bionic Candle

The Bionic Candle provides a more precise representation of candle strength and makes unclear prices more visible.

IMPORTANT: The developer is responsible for providing technical support for the indicator. If you have any questions, please contact the developer via email at [e-mail].

Introduction

The candle chart, Renko chart, and Heiken Ashi chart, developed in Japan over 250 years ago, reached Europe and the USA in 1989. In 2018, a German algorithmic trader developed the Bionic Candle, as traditional candle charts no longer meet modern stock market needs. The Bionic Candle is free for private traders but is copyrighted and cannot be marketed commercially.

Most traders look for patterns daily to signal entry or exit points, but this often leads to losses due to overlooked mathematical laws. Many chart patterns are ineffective for trading. The Bionic Candle reveals varying strengths within candles to identify future pullbacks. While causality exists between market factors, charts show only the effects, not the causes, which are in the market and limit orders. Traders often focus on effects rather than causes. Since candles are formed randomly, predicting future profitable patterns is not feasible.

Background

Large market participants, known as "big players," are the only ones capable of moving large markets. These players use complex algorithms to manage market and limit orders, ensuring the coordination of various order types. Some algorithms search for market anomalies like hidden stops, while others trigger specific trading strategies. During breakouts, market orders are placed while limit orders are withdrawn to avoid interference. To avoid constantly programming new algorithms, their internal processes are retained. The big players create invisible price zones that move based on market conditions. The algorithms adjust to different price levels while maintaining their original programming.

Function and application of the Bionic Candle

The Bionic Candle was developed to indirectly track institutional trading methods. It helps identify these invisible price zones of big players, increasing the likelihood of predicting potential trend reversals. By making these zones visible, traders can set clear entry and exit points on the chart. On the tick chart, these zones are significantly reduced in size, lowering stop loss, increasing the risk-reward ratio (RRR), and minimizing risk. Many traditional indicators, which lag by following price trends, can be omitted, leading to less distraction and a clearer screen. Identifying the big players' invisible price zones gives traders a clear advantage over most market participants.

Comparison and advantages over traditional candle charts

The Bionic Candle provides a more precise representation of candle strength and makes unclear prices more visible. It highlights the last movement before the candle closes, which is crucial for traders. Traditional candle charts show a candle body with two thin wicks, indicating strength, but these wicks are often not clearly visible, leading to misinterpretations. The Bionic Candle consists of nine different movement sequences, with customizable colors.

Analysis and interpretation

A traditional candle chart provides four data points (Open, High, Low, Close - OHLC), with the high and low being the same for both bullish and bearish candles. In a bullish candle, the close is above the open, and in a bearish candle, it's the opposite. Candle formations once provided important information, but their relevance has decreased with algorithmic trading. Traditional candle charts rate wicks neutrally and use the candle body to represent strength, which is often inaccurate. The Bionic Candle shows actual strength up to seven times more accurately. It uses only two sequences, saving time by requiring 33% fewer movements to analyze. Interestingly, traders focus more on the open than the close, even though the close is more recent. Therefore, the Bionic Candle omits the open. The decline from the high to the close of a bullish candle and from the low to the close of a bearish candle is crucial for predicting future price trends.

How to add the Bionic Candle in Quantower

To add the Bionic Candle indicator to your chart, open the indicators window and type the name in the search bar. Double-click on the indicator name to add it to your chart. This will immediately open the indicator settings window, where you can customize the colors to your preference. By default, the colors are set according to the author's recommendations.