Internal Candle Strength

The Internal Candle Strength trading indicator is a powerful tool designed to uncover hidden strength and weakness within a single candlestick by dividing each bar into multiple customizable rows. By analyzing trends on a lower timeframe within each section of the bar, traders gain deep insights into the internal power struggle between bulls and bears. This unique multi-row breakdown empowers traders with a new layer of price action analysis to spot potential reversals, continuation zones, and intrabar momentum with precision.

Whether you're a scalper looking for ultra-fine entries or a swing trader who wants to confirm trend conviction, this tool allows a refined look into micro market structure through advanced LTF (Lower Time Frame) analysis.

How to Trade Using the Internal Candle Strength Indicator?

The Internal Candle Strength indicator assigns a bullish/bearish percentage value to each row within a bar, ranging from 0% (strongest bearish) to 100% (strongest bullish). These values reflect the localized trend behavior pulled from a lower timeframe and mapped into zones across the bar.

This granular breakdown enables traders to:

• Analyze the internal trend direction and strength of any bar
• Identify high-probability reversal or breakout zones within a candle
• Confirm price action signals by checking LTF trend dynamics
• Spot hidden strength or weakness not visible on the main chart timeframe

Pay special attention to the extremes (top or bottom rows of a bar), where sharp shifts in strength may signal incoming price reversals or exhaustion.

You can configure the indicator to pull data from a selected lower timeframe (e.g., using 5m data on a 30m chart) and define how much of the candle's range each row covers. This gives you the flexibility to fine-tune the resolution of the internal trend data depending on your strategy.

Important: Make sure to only select a timeframe lower than the chart's current timeframe to ensure meaningful and accurate internal strength data.

Fine-Tuning Row Size for Optimal Insights

Row Size determines how many horizontal sections (or "rows") a single candle is split into. Smaller row sizes mean more rows per candle and a more detailed representation of strength changes across the candle.

• Smaller row size = more rows = higher resolution
• Larger row size = fewer rows = broader strength zones

This allows traders to dynamically adjust the granularity of the LTF strength overlay depending on their charting goals.

In the BTCUSD 30-minute chart shown above, different row size settings demonstrate how each candle can be sliced into smaller or larger segments for increased visibility into micro-trend shifts within the same candle.

Indicator Settings

To configure the Internal Candle Strength indicator effectively, you can adjust the following:

• Timeframe: The lower timeframe that will be used to extract internal trend data (must be lower than the chart timeframe).
• Row Size: Sets how much vertical space each row takes as a fraction of the total candle range. Smaller values give more detail.

This level of customization ensures that the indicator adapts to any trading strategy or market condition.

FAQ

What is the Internal Candle Strength indicator used for?
It helps traders analyze the internal strength and trend direction of a candle by dividing it into multiple zones using lower timeframe data, offering enhanced insights into price action.

What’s the benefit of using smaller row sizes?
Smaller row sizes allow for more rows per candle, giving a finer breakdown of internal strength and helping traders pinpoint more precise entry and exit zones.

Can I use a higher timeframe to analyze the rows?
No, only a lower timeframe should be selected to maintain the integrity of the LTF trend analysis.

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