TeoriaCutrim is a statistical overlay indicator designed to quantify recent market behavior through candle distribution and volatility analysis. Instead of predicting direction, it provides objective data about what the market has just done within a configurable window of candles.
Market Data Analyzed
The indicator evaluates a user-defined number of recent candles (Lookback period) and extracts:
- Number and percentage of bullish candles (close > open)
- Number and percentage of bearish candles (close < open)
- Difference between bullish and bearish dominance
- Average candle range (in pips)
- Current candle range (in pips)
- Total price range across the analyzed window
Visual Output and Interpretation
The indicator displays key metrics directly on the chart:
- Green: total bullish candles and percentage
- Red: total bearish candles and percentage
- Dif: absolute difference between bullish and bearish percentages
- Last Candle: current candle size in pips
- Avg. Candle: average size of candles in the selected window
- Range: distance between highest high and lowest low in the window
Interpretation is straightforward:
- A higher number of bullish candles suggests recent upward pressure
- A higher number of bearish candles suggests recent downward pressure
- A low difference (Dif) indicates balance or randomness
- Increasing average candle size indicates expanding volatility
- Large total range suggests market expansion, while small range suggests compression
Key Parameters
- Lookback: number of candles used for analysis (fully adjustable)
- Corner: screen position of the data display
- Decimals: number of decimal places shown
- Pad Left / Pad Top: visual spacing adjustments
Use Cases
TeoriaCutrim is best used as a context tool, not a signal generator. Typical applications include:
- Measuring statistical imbalance before entering trades
- Identifying volatility expansion or contraction
- Filtering trades based on recent candle behavior
- Supporting quantitative or probability-based strategies
Target User
This indicator is designed for traders who rely on data, statistics, and objective analysis rather than subjective pattern recognition. Suitable for both discretionary and systematic traders.