Average consecutive bars

Check out one of our founders explaining this report in the video below:

A ‘consecutive green (or red) streak‘ is a series of green (or red) candles. Each of these candles represents a time frame where the closing price is higher (or lower) than its opening price. Recognizing consecutive bar patterns hints at its momentum, potentially helping traders anticipate if a trend might continue or reverse.

Lets look at the data:

Green streak : Red streak : ES's longest streak of green 5min ES's longest streak of red 5min candles in a day is, on average, 5.33. candles in a day is, on average, 5.10. the max consecutive 5min candles the max consecutive 5min candles from 2023-07-10 to 2024-07-08 is 13 from 2023-07-10 to 2024-07-08 is 14 Now that we understand what the average consecutive bar report is and the data behind it, lets see some examples on a live chart.

After six green bars, which is about the average green streak, we noticed a change in the trend. For scalpers, this would have been a nice take profit point.

Now lets see a different example:

In the chart above we see nine consecutive bars, way above the average of 5.33 . The trend is strong and continuation is likely.

HOW DO I USE THIS IN MY TRADING ? This doesn't mean buy and sell if/when you're coming up on the averages, but it's something to keep in mind when you're looking to set entries, exits, and stop losses. if you're a scalper, you don't want to takes trades hoping for moves farther out than the averages, it'll likely reverse on you. if you day trade, the pullback could be a great opportunity to add to a winning position if the momentum is strong enough in the direction of your trade.