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Candle Body Shapes Strategy

Strategy that trades based on where a candle opens and closes within its range. Enters long when the candle opens near its low and closes near its high, showing strong bullish pressure. Enters short when the candle opens near its high and closes near its low, indicating strong bearish pressure.

The approach relies purely on price action and can be applied to any liquid market.

Details

  • Entry Criteria:
    • Long: Open near Low && Close near High
    • Short: Open near High && Close near Low
  • Long/Short: Both
  • Exit Criteria: Opposite signal
  • Stops: No
  • Default Values:
    • BodyThreshold = 0.2m
    • CandleType = TimeSpan.FromMinutes(5).TimeFrame()
  • Filters:
    • Category: Candlestick pattern
    • Direction: Both
    • Indicators: None
    • Stops: No
    • Complexity: Basic
    • Timeframe: Intraday
    • Seasonality: No
    • Neural Networks: No
    • Divergence: No
    • Risk Level: Medium
using System;
using System.Collections.Generic;

using Ecng.Common;

using StockSharp.Algo.Strategies;
using StockSharp.BusinessEntities;
using StockSharp.Messages;

namespace StockSharp.Samples.Strategies;

/// <summary>
/// Candle Body Shapes strategy.
/// "Near" means within BodyThreshold of the candle range. A candle that opens near its low and closes near its high goes long,
/// one that opens near its high and closes near its low goes short; the opposite signal reverses the position.
/// </summary>
public class CandleBodyShapesStrategy : Strategy
{
	private readonly StrategyParam<decimal> _bodyThreshold;
	private readonly StrategyParam<DataType> _candleType;

	/// <summary>
	/// Fraction of the candle range that counts as near its high or low.
	/// </summary>
	public decimal BodyThreshold
	{
		get => _bodyThreshold.Value;
		set => _bodyThreshold.Value = value;
	}

	/// <summary>
	/// Candle type.
	/// </summary>
	public DataType CandleType
	{
		get => _candleType.Value;
		set => _candleType.Value = value;
	}

	/// <summary>
	/// Constructor.
	/// </summary>
	public CandleBodyShapesStrategy()
	{
		_bodyThreshold = Param(nameof(BodyThreshold), 0.2m)
			.SetRange(0m, 1m)
			.SetDisplay("Body Threshold", "Fraction of the candle range that counts as near its high or low", "Pattern");

		_candleType = Param(nameof(CandleType), TimeSpan.FromMinutes(5).TimeFrame())
			.SetDisplay("Candle Type", "Type of candles to use", "General");
	}

	/// <inheritdoc />
	public override IEnumerable<(Security sec, DataType dt)> GetWorkingSecurities()
	{
		return [(Security, CandleType)];
	}

	/// <inheritdoc />
	protected override void OnStarted2(DateTime time)
	{
		base.OnStarted2(time);

		var subscription = SubscribeCandles(CandleType);
		subscription
			.Bind(ProcessCandle)
			.Start();

		var area = CreateChartArea();
		if (area != null)
		{
			DrawCandles(area, subscription);
			DrawOwnTrades(area);
		}
	}

	private void ProcessCandle(ICandleMessage candle)
	{
		if (candle.State != CandleStates.Finished)
			return;

		if (!IsFormedAndOnlineAndAllowTrading())
			return;

		var range = candle.HighPrice - candle.LowPrice;

		if (range <= 0)
			return;

		var near = BodyThreshold * range;
		var openNearLow = candle.OpenPrice - candle.LowPrice <= near;
		var openNearHigh = candle.HighPrice - candle.OpenPrice <= near;
		var closeNearLow = candle.ClosePrice - candle.LowPrice <= near;
		var closeNearHigh = candle.HighPrice - candle.ClosePrice <= near;

		if (openNearLow && closeNearHigh && Position <= 0)
			BuyMarket(Volume + Math.Abs(Position));
		else if (openNearHigh && closeNearLow && Position >= 0)
			SellMarket(Volume + Math.Abs(Position));
	}
}