I'll skip the regular introduction blah-blah as this is an instructional post:

1. What is a Master Candle?

A Master Candle is a longish candle whose height engulfs the next 4 candles' high and low. See image below:

2. How is it interpreted?

A Master Candle denotes a range. Typically the next 4 candles move within the Master Candle’s high and low and that signifies a range.

Traders can look for a breakout or breakdown from the range.

3. What Period works the best?

Hour-Period should be used by day traders and Day-Period should be used by swing traders. 

4. What should I do after discovering stocks per the screener formula?

Add one more parameter to the screener formula that can help you detect breakouts or breakdowns (formula give below). Also, avoid penny and low volume stocks.

5. Okay, I got a breakout stock on the HOUR chart, what should I do next?

a. Draw a trendline to understand prior movements and check if the stock is in a bullish or bearish trend or in a range.

b. Check the volumes. The breakout or breakdown candle becomes more significant if it is triggered by volumes that are higher than the prior 1-2 period’s volumes.

c. Apply Fibonacci Retracement to the entire trend to learn of key support and resistance levels.See image below:

6. What is the Master Candle Screener Formula?

Here is the formula in text for 1-HOUR PERIOD BREAKOUT (Day Trading). Change the period to DAY if you are a swing trader. All conditions must be fulfilled:

[-5] 1 hour high GREATER THAN [-4] 1 hour high

 [-5] 1 hour high GREATER THAN [-3] 1 hour high

 [-5] 1 hour high GREATER THAN [-2] 1 hour high

 [-5] 1 hour high GREATER THAN [-1] 1 hour high

 [-5] 1 hour low LESS THAN [-4] 1 hour low

 [-5] 1 hour low LESS THAN [-3] 1 hour low

 [-5] 1 hour low LESS THAN [-2] 1 hour low

 [-5] 1 hour low LESS THAN [-1] 1 hour

 [0] 1 hour high > [-5] 1 hour high

Finally, after selecting 1 or more stocks, apply your risk management policy before trading. Note that this post is purely educational and I have no interest in the stock that appears in the chart.