I was looking into candles some more today and trying to find a explanation for the drop in AJ based on just whats on the chart. I did the following analysis.
It’s pretty simple. All you have to do is figure out who is in control (bulls or bears). The way to do that is to look at two candles at a time. The candles of greater than average height is of interest. We are trying to look at candles that show us the shift in power. Where one (bears or bulls) beat the other and just mark them. Soon you will have a good feeling of the balance of power and which way the pair is shifted towards. The most interesting areas are of where there is consolidation (where there isn’t much price movement but a lot of power candles where you can clearly spot who is in control. In this areas, place the trade towards the next level.
In the middle you will see an area where there is consolidation and the bulls clearly had the upper hand but the price went lower but then price returned back to this zone. It often does that.
This needs to be turned into a market forces indicator.. haha
- This reply was modified 6 years, 6 months ago by Saver0.
Attachments:You must be logged in to view attached files.
Focus, Patience, Determination & Order in chaos