Candlestick Analysis in Trading
Can you see and agree that this wick on this candlestick right
here is
longer than this one? That's why I'm picking this one. Okay?
And now what's the useful information it's providing?
When price was down here, it can trade up into this inefficiency,
but it-
if it wants to trade beyond that...
Now, this is what you wanna have in your notes
for, um, when you're having
imbalances like bearish fair value gaps or bullish fair value gaps, even
the, uh, suspension blocks.
If the block is formed, or the inefficiency rather, is
formed on a wick, not a stubby-ended candlestick
body, and what would that look like? Something like this.
That's a stubby-ended bottom candle, or it could be the opening and
low being the same price. That's not what we're seeing on this
candlestick here or
this candlestick. You see that? It's, it's a wick.
What I do is when I'm below that, and if it can trade up into this inefficiency,
it's, it's defined with that volume imbalance. You see that?
That's why I'm using that area there.
Up to this candlestick's low, that's simply the bearish fair value gap.
But if it's formed with wicks that is in the same
range that this is being shared in, this wick is not the importance.
This wick is the importance. So you wanna grade that
End of transcript · 231 words