Next Candle Predictor

The Next Candle Predictor indicator provides a multi-indicator confluence scoring system designed to forecast the directional probability of the immediate subsequent candle. By integrating trend, momentum, and volume metrics, it offers traders a comprehensive assessment of market conditions to identify high-probability entry points in futures and cryptocurrency markets.

Usage

The Usage section describes how the script can be used to interpret market momentum and trend strength. Traders can utilize the visual dashboard and on-chart signals to gauge the likelihood of a bullish or bearish continuation.

• Directional Forecasting: Use the prediction percentages (Long vs. Short) to determine the dominant market sentiment. A higher percentage suggests a stronger probability for the next candle's direction.
• Confluence Confirmation: Look for "PERFECT TIME" labels which appear when a user-defined number of indicators (out of 8) align with the trend and volume requirements.
• Projection Candles: When enabled, the script draws simulated candles based on current volatility (derived from Bollinger Band width) to visualize potential price targets.
• Signal Labels: "BUY" and "SELL" arrows appear on EMA crossovers when they align with the broader Supertrend direction.

Details

The script operates on an 8-point confluence system, scoring market data based on the following technical components:

• Custom Supertrend & EMAs: Establishes the primary trend direction and confirms alignment across short and medium-term moving averages (8, 21, and 50 EMAs).
• Volume Delta: Acts as a leading indicator by calculating the ratio of buying vs. selling volume within a single candle range.
• Oscillators (RSI & Stochastic): Monitors overbought/oversold conditions and 50-level crossovers to ensure momentum supports the prediction.
• ADX Trend Threshold: Dynamically adjusts the prediction sensitivity. In high-trend environments (ADX > 25), the script lowers the required probability threshold for signals.
• Volatility Regime Detection: Analyzes ATR percentiles to categorize the market as High, Medium, or Low volatility, which subsequently scales the final probability scores.

Settings

Main Settings

• ATR Period: Sets the lookback period for Average True Range calculations used in volatility detection.
• Trend Factor: Adjusts the multiplier for the custom Supertrend calculation.
• Trend ATR Period: The lookback period specifically for the Supertrend component.

Confluence Settings

• Minimum Confluence Score (1-8): Determines how many indicators must align before a high-conviction signal is triggered.
• Minimum Volume Ratio: The required volume relative to its 20-period moving average to validate a signal.
• ADX Trend Threshold: The minimum ADX value required to consider the market "trending" for more aggressive signal logic.

Visual Settings

• Show Analysis Table: Toggles the dashboard displaying indicator status, ASCII bars, and percentages.
• Show Prediction Candles: Enables or disables the volatility-scaled projection candles.
• Show Trend Background Fill: Toggles the background coloring based on the current Supertrend state.

FAQ

How do I interpret the "PERFECT TIME" signal? This signal triggers when the prediction percentage exceeds the dynamic threshold and the confluence score meets your minimum requirements, specifically requiring volume delta confirmation.

Can I use this on any timeframe? Yes, the script is designed to be compatible with all timeframes, though the dynamic ADX and ATR components make it particularly effective for scalping and day trading.

How do I get access to the Next Candle Predictor? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.