Weekly commentary 1 Flashcards
Is it enough to see a candle wick in a volume imbalance?
No, it’s important to see the body of a candle trade through a volume imbalance.
Why is it important too see the body a candle trade through a volume imbalance.
Price is being rebalanced to fill inefficiencies. This is a sign of good institutional order flow.
Review steps
On a weekly time frame, anticipate where price will go.
Drop to the daily chart
Drop to 4 hour chart
Drop to 1 hour,
Drop to 15 minute
What’s 1 signature of the algorithm doing it’s job?
When a price imbalance, or liquidity lines up with an Optimal Trade Entry.
Why are long wicks manipulative?
When price wicks above a high, there is no intention for price to stay above the high, because the main orders, or the bulk of the orders are in the body of a candle. The real price action is in the bodies. The wicks do the damage.
A market structure break only occur when the body, or a few bodies close above the high.
Always consider where the bodies close, as that shows the intention of that price range. The main story of price action remains in the bodies.
