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

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

import { Candle } from '../types';
/**
 * Validates that a base (a run of indecisive candles) is well-formed relative to
 * local volatility. Two checks are applied:
 *
 * 1. **Gap check** — rejects the base if any consecutive open-to-prior-close gap
 *    *between base candles* (base[0]→base[1], etc.) exceeds MAX_BASE_GAP_ATR_MULTIPLIER × ATR.
 *    The precedingCandle→base[0] transition is excluded because a gap entering the base
 *    from the explosive leg is valid (and often a strong zone signal).
 *
 * 2. **Height check** — rejects the base if its overall high-to-low range exceeds
 *    MAX_ZONE_ATR_MULTIPLIER × ATR.
 *
 * When `localATR` is zero or negative (e.g. insufficient data at the start of a series),
 * the checks are skipped and `true` is returned.
 *
 * @param baseCandles     - The indecisive candles that form the base.
 * @param precedingCandle - The candle immediately before the first base candle.
 * @param localATR        - ATR computed from the context window around the base.
 * @returns `true` if the base is valid, `false` if either check fails.
 */
export declare function isValidBase(baseCandles: Candle[], precedingCandle: Candle, localATR: number): boolean;