Nothing Special   »   [go: up one dir, main page]
Scribd Logo
Upload

Welcome to Scribd!

  • 390 views

    Candle Checklist

    Uploaded by

    Yagnesh Patel
    1. When looking at an institutional candle (IC), it is important to determine if it clears liquidity such as an equal high/low or trendline. A valid IC will take out liquidity. 2. The IC should be sufficiently large, as a bigger size indicates presence of "smart money" in the market. However, an IC that is too small may not be as reliable. 3. The IC should align with the overall market structure - it is better for the IC to continue an existing trend rather than signal a reversal against the trend.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Candle Checklist

    Uploaded by

    Yagnesh Patel
    390 views5 pages
    1. When looking at an institutional candle (IC), it is important to determine if it clears liquidity such as an equal high/low or trendline. A valid IC will take out liquidity. 2. The IC should be sufficiently large, as a bigger size indicates presence of "smart money" in the market. However, an IC that is too small may not be as reliable. 3. The IC should align with the overall market structure - it is better for the IC to continue an existing trend rather than signal a reversal against the trend.

    Original Description:

    Original Title

    candle Checklist

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1. When looking at an institutional candle (IC), it is important to determine if it clears liquidity such as an equal high/low or trendline. A valid IC will take out liquidity. 2. The IC should be sufficiently large, as a bigger size indicates presence of "smart money" in the market. However, an IC that is too small may not be as reliable. 3. The IC should align with the overall market structure - it is better for the IC to continue an existing trend rather than signal a reversal against the trend.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    390 views5 pages

    Candle Checklist

    Uploaded by

    Yagnesh Patel
    1. When looking at an institutional candle (IC), it is important to determine if it clears liquidity such as an equal high/low or trendline. A valid IC will take out liquidity. 2. The IC should be sufficiently large, as a bigger size indicates presence of "smart money" in the market. However, an IC that is too small may not be as reliable. 3. The IC should align with the overall market structure - it is better for the IC to continue an existing trend rather than signal a reversal against the trend.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    FU SIGNALS 10 DAY MENTORSHIP

    INSTITUTIONAL CANDLE CHECKLIST

    1. First thing to ask yourself when looking at an institutional candle,


    does it take liquidity? If a IC clears a pool of liquidity such as an equal
    high/low or a trendline, then thats the first confirmation we have that
    our institutional candle is valid.

    2. Is the institutional candle big enough? the institutional candle or FU


    candle is usually bigger than the other candles as this indicates Smart
    Money was present in the market at that certain Time and they were
    going for a liquidity hunt.

    Institutional candles such as the one below aren't that great as even though it
    does clear liqudity and we have nice bullish movement after it, it's too small.

    On the other hand an institutional candle that looks like the one below is much
    1
    higher probable as it has a nice wick clearing liquidity with a decent sized
    institutional candle and then gets engulfed with a series of strong bearish
    candles after it.

    3. Another important question you have to ask yourself is does the


    institutional candle line up with our structure? Taking a trade when our
    IC is following our market structure has a much more high probability
    as we are looking to continue our downward or upward trend, rather
    than looking for a reversal if our IC was going against the structure.

    As you can see here we had a nice looking IC but as you can see it isnt smart for
    us to try and buy EURUSD from that candle specifically based off the bearish
    structure of the market.

    2
    4.Be mindful of the current fundamentals and economics happening in
    the world at the current moment, you have to be aware of the
    fundamentals on that current pair your looking at. Remember
    fundamentals are always one step ahead of Technicals, so its always
    good to be watching news events unfolding around the world , and
    reading fundamental analysis articles online as usually they give you
    tell tale hints about what could happen before it unfolds in front of you
    in the form of Price Action on the charts.
    EG: never try buy USDXXX pairs if a certain news event is happening and the
    prediction will be bearish sometimes common sense is all thats needed in the
    markets sometimes.

    5. Does the open or 50% of your institutional candle line up with your
    FIB tool? the fibonnaci tool isn't a magic tool it's just a tool to
    determine where you can expect the banks to come back to and sell or
    buy at a premium or discounted price. once the IC lines up with a Fib
    level such as the 0.71 or .886 level it gives us more confirmation that
    the banks will come back down to that level then move price our
    direction.

    3
    To use your Fib efficiently drag it from the low that the IC is on to the most
    recent high.

    6. Is your institutional candle lying in a demand or supply zone? this


    once again increases our odds that price will push up from these areas.

    Supply and demand zones are observable areas on a forex chart where
    price has approached many times in the past. Unlike lines of support
    and resistance, these resemble zones more closely than precise lines.

    7. Is there a small imbalance above or below your specific IC , this is


    important in giving you extra confidence that price will come back down
    to fill in that IPA before heading off as all imbalances and gaps are
    filled in the market due to algorithms. To check this usually you will
    have to scale down to a smaller timeframe such as the 15min to check.

    4
    Price came down and filled in our imbalance just above our IC and gave us a nice
    reaction it then decided it still wanted to medigate out of our institutional candle
    came down once again and flew to the upside.

    You might also like