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Energy Meter (Candle Range/ATR Ratio)

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Purpose:
This indicator is a simple, intuitive way to visualize auction energy — the actual force behind a price move — rather than just its appearance on the chart. It’s built on a single idea:

If a bar travels farther than normal in its fixed amount of time, something pushed harder than usual.

That “push” is auction energy, and it’s the raw material of microstructure inference: reading intent and imbalance from nothing more than candles, tempo, and volatility.

Traditional indicators focus on price patterns or volume. This one focuses on pressure — the underlying imbalance driving each bar.

How It Works

Each bar’s True Range is divided by its ATR, producing a normalized ratio:
  • 1.0 = Average energy
  • >1.2 (default) = Above-normal energy
  • <1.0 = Quiet, low-pressure bars


This ratio is plotted as a histogram to highlight bursts of force, with a smoothed line added to show the tempo of recent energy changes.

When the histogram spikes, you’re seeing the auction flash its teeth: aggression, initiative, failed absorption, breakout ignition, or the first punch of a reversal.
When the line rolls over, you’re seeing the engine lose torque.

It’s a minimalist tool for seeing who is actually winning the auction, even when price looks deceptively calm.

Why It Matters

Price moves because of imbalance, not geometry. Two candles that look identical can represent completely different internal dynamics.
This indicator helps you see:
  • Breakout strength vs. fakeouts
  • Acceleration vs. drift
  • Exhaustion after extended runs
  • Reversal attempts with real intent
  • Quiet absorption before explosive moves
  • Shifts in aggression hidden inside consolidation


For new traders, it’s a clean introduction to microstructure inference — extracting meaningful order-flow insights without needing L2, DOM, or volume profile.
For experienced traders, it's a compact impulse detector that complements trend, volatility, and liquidity models.

Summary

This is a lightweight, first-principles tool designed to expose the energy signature of the auction: how hard the market is trying to go somewhere.
It doesn’t predict direction — it reveals pressure, so you can judge the quality of the move you’re trading.

Energy beats geometry.
Intent beats patterns.
Microstructure is hiding in every candle; this indicator makes it visible.
Catatan Rilis
Tightened up comments.

Pernyataan Penyangkalan

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