Candle Range Theory for SeSe04

Small Candle Theory — Automatic Detection of Micro-Retracements
📘 Description

The Small Candle Theory indicator automatically identifies market structures where a small candle forms within the range of a larger previous candle, highlighting potential momentum slowdown or local reversal areas.

This is a price action visualization tool, not a trading signal provider.

⚙️ Detection Conditions
📈 Bullish Signal

Candle 1: Large bearish candle

Candle 2: Small bullish candle

Candle 2 closes within the range of Candle 1
→ A blue triangle appears below the confirmation candle.

📉 Bearish Signal

Candle 1: Large bullish candle

Candle 2: Small bearish candle

Candle 2 closes within the range of Candle 1
→ A red triangle appears above the confirmation candle.

🧠 How to Use

This indicator does not generate buy/sell signals.
It highlights moments of reduced volatility that may precede a potential reversal or continuation, depending on market structure.

Best used:

In confluence with structure tools (support/resistance, order blocks, FVGs, etc.)

With strict risk management

On multiple timeframes

⚙️ Settings

No manual input is required.
Detection logic is automatic and works on any asset or timeframe.

🛎️ Alerts (optional)

You can create an alert in TradingView:
"Create Alert" → Condition: Small Candle Theory (Bullish or Bearish)
to receive notifications when a setup appears.

⚠️ Disclaimer

This script is for educational and analytical purposes only.
It does not constitute financial advice.
Trading involves the risk of losing part or all of your invested capital.