CBC Flip

The CBC Flip indicator provides a systematic method for gauging market sentiment by identifying whether bulls or bears are in control on a candle-by-candle basis.

Usage

The Usage section describes how to interpret the signals generated by the script and how to integrate them into a trading strategy.

• Bulls in Control: A green upward-pointing triangle appears below the candle when the current close is higher than the previous candle's high. This signifies a bullish "flip" or continuation of bullish control.
• Bears in Control: A red downward-pointing triangle appears above the candle when the current close is lower than the previous candle's low. This signifies a bearish "flip" or continuation of bearish control.

Strategy Integration Users often find the highest utility for this indicator on the 5-minute or 10-minute timeframes, which helps filter out the "noise" found on 1-minute charts while capturing significant intraday trends. A common approach is to use the CBC Flip in conjunction with the Volume Weighted Average Price (VWAP):

• Long Positions: Look for a bullish flip signal (green triangle) when price is trading above the VWAP.
• Short Positions: Look for a bearish flip signal (red triangle) when price is trading below the VWAP.

Details

The CBC Flip is based on the Candle By Candle (CBC) strategy developed by MapleStax. The logic operates on a state-persistence model:

1. Bullish Condition: If the most recent candle close is above the previous candle's high, the sentiment flips to bullish.
2. Bearish Condition: If the most recent candle close is below the previous candle's low, the sentiment flips to bearish.
3. Persistence: If neither condition is met, the indicator maintains the previous state. For example, if the market was bullish and the current candle closes within the previous candle's range (inside bar), the sentiment remains bullish until a bearish flip condition is satisfied.

This methodology ensures that traders stay aligned with the immediate trend and prevents premature exits during minor price fluctuations that do not breach the previous candle's extremes.

Settings

As the CBC Flip logic is based on fixed price action rules, this script focuses on visual and alert outputs:

• Bears: Toggles the visibility of the downward triangle shapes and labels for bearish flips.
• Bulls: Toggles the visibility of the upward triangle shapes and labels for bullish flips.
• Background Color: Enables or disables the background highlighting that occurs when a trend flip signal is initially triggered.

FAQ

What does "CBC" stand for? CBC stands for Candle By Candle, referring to the strategy's focus on individual candle closes relative to the preceding candle's range.

What are the best timeframes for this indicator? While it can be applied to any timeframe, it is frequently used on the 5-minute and 10-minute charts to capture intraday swings while avoiding the volatility of lower timeframes.

How can I access the CBC Flip? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.