CANDLE ACCEL Trading Guide
The Candle Acceleration Oscillator (CAO) detects structural volatility shifts by cleanly modeling market phases: Quiet (consolidation), Warmup (expanding volatility), and Explosion (anomalous momentum).
What does the indicator show?
- Volatility Histogram: Bars tracking the size of the current candle relative to its average. Baseline bars are grey (Quiet).
- Warmup & Explosion Colors: 'Warmup' (yellow/orange) indicates emerging volume/range. 'Explosion' (bright green/red) triggers when a massive directional expansion hits.
- ACC Text Labels: Direct "ACC" marks plotted on the histogram for instant visual confirmation of an explosion state.
Key Settings
- Avg Range Period: The smoothing length used to establish the baseline 'average' size of a candle.
- Warmup Multiplier: The threshold multiplier (e.g., 1.5x) required to classify a candle's growth as entering the 'Warmup' phase.
- Explosion Multiplier: The threshold multiplier (e.g., 3.0x) defining an anomalously large, 'Explosive' market move.
How to use Strategy Parameters (Condition Source)
Within the Strategy Tester module, you can leverage the data from this indicator to create powerful logical conditions for trade entries and exits.
1. Acceleration Phases
You can use the discrete market phases as either direct entry triggers or structural filters.
Bullish / Bearish Explosion— Extremely restrictive boolean triggers that emit a true value only when a candle exceeds the Explosive multiplier (e.g., 3x average).Bullish / Bearish Warmup— Boolean triggers for the initial expansion phase, great for catching a move early.Ratio (Absolute)— The raw continuous numerical multiplier of the current candle vs the average.
Strategy Example: To prevent trading in flat markets, you can add an entry condition confirming that the Accel Value > 1.5 or that a Warmup is_true before executing a trend-following logic.