# Consecutive Candle Streak Analysis

Counts runs of consecutive higher or lower closes and benchmarks the live streak against every comparable run in the historical lookback. A dashboard reports continuation and reversal probabilities with maximum and average stage moves, and an UNPRECEDENTED alert flags streaks beyond anything on record. Built for swing and position traders on daily and higher timeframes.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Feb 19, 2026.
- Access: free.
- Concepts: [Distribution-of-returns Profiling](https://www.luxalgo.com/library/concept/distribution-of-returns-profiling/) (primary), [Streak Analysis](https://www.luxalgo.com/library/concept/streak-analysis/)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn0y9f0019vhsgjq085qir
- Page: https://www.luxalgo.com/library/indicator/consecutive-candle-streak-analysis/

**Consecutive Candle Streak Analysis** counts runs of consecutive higher or lower closes and asks a blunt statistical question: how did every comparable run in history resolve? It applies [distribution-of-returns profiling](https://www.luxalgo.com/library/concept/distribution-of-returns-profiling/) to streaks: every completed run in the lookback is stored, and the live streak is benchmarked against runs of the same length, stage by stage. Streak statistics need depth to mean anything, so the tool is built for daily, weekly, monthly, and quarterly charts.

## How to Trade the Consecutive Candle Streak Analysis?

- **Continuation vs reversal**: the dashboard reports what share of historical streaks at the current length extended one bar further and what share reversed, probabilities drawn from actual frequency, not theory.
- **Max and average stage moves**: compare the current percentage move against the largest and typical moves recorded at the same stage to judge overextension.
- **UNPRECEDENTED alert**: fires when the live streak exceeds every observation in the lookback, uncharted territory and a reason to reassess risk.
- **Historical highlight boxes**: matching past streaks are projected onto the chart with their full high-low range, showing where similar runs stalled.

It sits with LuxAlgo's other [statistics tools](https://www.luxalgo.com/library/family/statistics/) as decision support that cuts both ways: contrarians get quantified exhaustion context, trend followers get evidence a run is still historically ordinary.

## Consecutive Candle Streak Analysis Settings

- **Max Historical Streaks**: how many of the most recent completed streaks are used for benchmarking (default 10,000); more history steadies the probabilities.
- **Highlight Matches**: toggles boxes over the current streak and past same-direction streaks of the same length or longer.
- **Show 'Length & Longer' Stats**: expands the dashboard with the eventual outcomes of streaks at least as long as the current one.
- **Dashboard / Position / Size**: toggle the statistics panel and control where and how large it renders.

## Frequently Asked Questions

### What counts as a streak?

A bullish streak is a run of bars closing above the prior close; a bearish streak is the mirror image. Each completed run joins the historical dataset the live streak is measured against.

### Which timeframes suit it best?

Daily and above (weekly, monthly, quarterly), where each close carries real weight and the sample is statistically meaningful. For calendar-based context on the same charts, the [Day Of Week Price Distribution](https://www.luxalgo.com/library/indicator/day-of-week-price-distribution/) makes a natural companion.

### Is the Consecutive Candle Streak Analysis free?

It's free. Grab it from the LuxAlgo Library. This page can also load it straight into Quant, our coding agent, for immediate testing or backtesting. You can also copy the source code from this page and run it anywhere Pine Script® runs.

## Related indicators

- [Probability Grid](https://www.luxalgo.com/library/indicator/probability-grid/) (Distribution-of-returns Profiling): markdown at https://www.luxalgo.com/library/indicator/probability-grid.md
- [ATR Exceedance Probability Model](https://www.luxalgo.com/library/indicator/atr-exceedance-probability-model/) (Distribution-of-returns Profiling): markdown at https://www.luxalgo.com/library/indicator/atr-exceedance-probability-model.md
- [Visible Range Mean Deviation Histogram](https://www.luxalgo.com/library/indicator/visible-range-mean-deviation-histogram/) (Distribution-of-returns Profiling): markdown at https://www.luxalgo.com/library/indicator/visible-range-mean-deviation-histogram.md
- [Day Of Week Price Distribution](https://www.luxalgo.com/library/indicator/day-of-week-price-distribution/) (Distribution-of-returns Profiling): markdown at https://www.luxalgo.com/library/indicator/day-of-week-price-distribution.md
- [Reversal Probability Zone & Levels](https://www.luxalgo.com/library/indicator/reversal-probability-zone-levels/) (Percentile Rank): markdown at https://www.luxalgo.com/library/indicator/reversal-probability-zone-levels.md
- [Change-Point Detection (CUSUM)](https://www.luxalgo.com/library/indicator/change-point-detection-cusum/) (Outlier Detection): markdown at https://www.luxalgo.com/library/indicator/change-point-detection-cusum.md
- [Standardized Cumulative Deltas](https://www.luxalgo.com/library/indicator/standardized-cumulative-deltas/) (Z-score): markdown at https://www.luxalgo.com/library/indicator/standardized-cumulative-deltas.md
- [Sigmoid Transition Trailing Stop](https://www.luxalgo.com/library/indicator/sigmoid-transition-trailing-stop/) (Sigmoid/softmax Transforms): markdown at https://www.luxalgo.com/library/indicator/sigmoid-transition-trailing-stop.md

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Source: https://www.luxalgo.com/library/indicator/consecutive-candle-streak-analysis/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/