Understanding Candlestick Patterns in Trading
Three consecutive down closed candles is a bullish order block, which
is also the
midpoint of that gap.
Gap is defined by this candle's low and this candle's high,
the one single candle
in the middle, that's the fair value gap.
Market rallies creates a small little volume imbalance in here. I liked that.
Here is this down closed candle, which is a propulsion block. Okay?
Propulsion block is a down closed candle that
approaches or goes into a previous order block that's lower, which is what we have
here.
I like to see nothing more than half of that candle
be traded to, and we see that occurring here. Look at the bodies.
Yes, we get a wick, but look at the bodies expecting return
back to this
midpoint. Sure. But look at the precision there.
That is perfect. That's algorithmic.
When you look at how I look at price this year,
you're never gonna look at a candlestick chart ever again the same way.
You're not even gonna reach for a bull flag.
You're not gonna look for a head and shoulders pattern.
You're never gonna reach for a diagonal trend line.
Those things are gonna be cast aside,
and you're gonna focus in on the open, high, low, and close.
That's all the algorithm is working with, and it's using time. Okay?
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