154 DesAccelerarion

This indicators looks at changes in the body size of the candles. When a trend is approaching its end, it is common for the body of the candles to become smaller. This indicator simply standardizes all candles and quantifies the difference between any one candle and its prior candle. Extreme negative values indicate a desacceleration, and likely the start of a consolidation or the end of a trend (i.e., a likely reversal.)

The indicator can be calculated at different time frame (time of window used in the candles). En the example below, one minute candles are show, and the DesAccelerarion indicator for one minute is shown in green. From the Value, it can be seen that the green candes reduced to about 10% of the red candle. In other candles with larger time frames (red and orange), the desacellration was larger, probably indicating a considerable reducion in the uptrend and potentially a reversal or correction.

Figure 14.24: DesAccellerarion