@cmike444/supply-and-demand-zones/dist/lib/isExplosiveCandle.d.ts

A library for identifying supply and demand zones in candlestick data.

import { Candle } from "../types";
/**
 * Determines if a given candle is considered "explosive" based on its body-to-range ratio.
 *
 * An explosive candle typically has a range abnormally larger than previous candles, indicating institutional activity.
 *
 * @param candle - The candle object containing the data to analyze.
 * @param threshold - The threshold ratio (default is `DEFAULT_EXPLOSIVE_THRESHOLD`)
 *                    above which the candle is considered explosive.
 * @returns `true` if the candle's body-to-range ratio exceeds the threshold, otherwise `false`.
 * @todo: Use Average True Range (ATR) to determine if the candle is significantly larger than previous candles.
 * @todo: Use candle's Relative Volume (RVOL) to increase confidence abour institutional activity.
 */
export declare function isExplosiveCandle(candle: Candle, threshold?: number): boolean;