Opposite Candle Zone Identifier (v6) - Extended

🔍 Opposite Candle Zone Identifier (Extended)

Opposite Candle Zone Identifier is a price-action based indicator designed to identify potential reversal or absorption zones by detecting candles that move against the surrounding trend.

The indicator highlights a central opposite candle (or group of candles) that is surrounded by candles moving in the opposite direction, both before and after the central candle.
This structure often represents areas where institutional activity, absorption, or supply/demand imbalance may occur.

📌 How the Indicator Works

The indicator analyzes price action using three configurable blocks:

1️⃣ Candles Before (Backward)

A user-defined number of candles before the central candle(s) must follow a consistent trend:

Bullish candles for a bearish zone

Bearish candles for a bullish zone

2️⃣ Central Candle(s)

The core of the pattern:

Default: 1 opposite candle

Can be increased (up to 5) to adapt the indicator to lower timeframes or noisier markets

This central block must move against the previous trend, signaling a potential shift or absorption area.

3️⃣ Candles After (Forward)

A user-defined number of candles after the central candle(s) must resume the original trend, confirming the pattern.

⚠️ The signal is confirmed only after the “after” candles are completed.
This avoids repainting and ensures structural confirmation.

📐 Zone Concept

The highlighted central candle (or candles) can be used to define a price zone:

The high and low of the central candle(s) represent a potential supply or demand zone

These zones can be used for:

Reversal areas

Reaction zones

Entry refinement

Stop placement

⚙️ Inputs & Customization

Number of candles before
Controls how many candles must follow the initial trend.

Number of candles after
Defines how many candles are required for confirmation.

Central candles count
Default is 1, but can be increased (e.g. 2) for:

Lower timeframes

More reliable structure

Reduced noise

ATR-based offset
Labels are positioned using a dynamic ATR offset to improve chart readability across different markets and timeframes.

📈 Bullish & Bearish Zones
🟢 Bullish Zone

Bearish candles before

Bullish central candle(s)

Bearish candles after

Indicates potential demand or accumulation zone

🔴 Bearish Zone

Bullish candles before

Bearish central candle(s)

Bullish candles after

Indicates potential supply or distribution zone

🧠 Best Use Cases

Works best on 15m and higher timeframes

Effective on:

Indices

Forex majors

Liquid cryptocurrencies

Can be combined with:

Trend filters (EMA, VWAP)

Support & resistance

Market structure analysis

⚠️ Notes

This indicator is confirmation-based, not predictive

Signals appear only after pattern completion

It does not repaint

Best used as a confluence tool, not as a standalone trading system

🎯 Summary

Opposite Candle Zone Identifier helps traders:

Detect opposite-direction candles within strong trends

Identify potential supply and demand zones

Adapt the pattern to different timeframes

Improve price-action based decision making