3 Steps to Quantify the Bullish Momentum of a Candle

We all know that green candles contain bullish momentum and red candles bearish. However, we are often ignorant on the quantity of the momentum. In other words, how bullish is a bullish candle and how bearish is a bearish candle? 

Measuring the quantity of the bullish momentum in a candle is critically important in order to increase the winning probability. 

We can quantify the bullish momentum of a candle in 3 steps: 

Step 1: Divide a candle into 4 segments with 25% each segment. 

Step 2: Mark down 100% bullish momentum at the high of the candle, 50% at the middle and 0% at the low. Then, mark down the 25% and 75% accordingly. 

Step 3: Observe which segment the closing price of the candle is located. You can probably tell the percentage of the bullish momentum. 

The image above shows that there is approximately 10% bullish momentum in the red candle and 90% bullish momentum in the green candle. 

Now, try to find out the percentage of bullish momentum of a candle on your chart. 


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