Trade Plan:
Locate Buying and selling pressure zones implied by the lower and upper shadows/wicks of candlestick price bars.
These areas have THREE rejection shadows or wicks in a relatively close area or time period.
These pressure zones can be done on 15 minute time frames, but 1 hour, 4 hour or daily charts are stronger and more reliable.
Look at attached chart ( do you see numbers 1, 2 and 3? rejection lower shadows or wicks)- this suggest future bullish or buying trading.
* Buy next 1 hour candlestick bar (blue on chart) after the three rejection lower shadows or wicks, with right risk management under your strategy and plan.
Pro Tip:
A strong pressure zone is not defined just by one pin bar!!! These need a minimum of three rejection shadows and/or wicks, which make these zones ones which the big money or big banks have a wall up that they do not want price action to go thru at this time. Never fight big money/banks- trade with them.
Bullish Pressure Zones- Multiple price bars with lower wicks
Bearish Pressure Zones- Multiple price bars with higher wicks
Common Mistake: The buying or selling pressure found on a single price bar might not be sufficiently reliable for a trading setup. Instead of a single bar, look for at least three consecutive bars with overlapping upper or lower shadows. When multiple shadows overlap the create a price zone that is more likely to exhibit the buying or selling pressure you anticipate.
Locate Buying and selling pressure zones implied by the lower and upper shadows/wicks of candlestick price bars.
These areas have THREE rejection shadows or wicks in a relatively close area or time period.
These pressure zones can be done on 15 minute time frames, but 1 hour, 4 hour or daily charts are stronger and more reliable.
Look at attached chart ( do you see numbers 1, 2 and 3? rejection lower shadows or wicks)- this suggest future bullish or buying trading.
* Buy next 1 hour candlestick bar (blue on chart) after the three rejection lower shadows or wicks, with right risk management under your strategy and plan.
Pro Tip:
A strong pressure zone is not defined just by one pin bar!!! These need a minimum of three rejection shadows and/or wicks, which make these zones ones which the big money or big banks have a wall up that they do not want price action to go thru at this time. Never fight big money/banks- trade with them.
Bullish Pressure Zones- Multiple price bars with lower wicks
Bearish Pressure Zones- Multiple price bars with higher wicks
Common Mistake: The buying or selling pressure found on a single price bar might not be sufficiently reliable for a trading setup. Instead of a single bar, look for at least three consecutive bars with overlapping upper or lower shadows. When multiple shadows overlap the create a price zone that is more likely to exhibit the buying or selling pressure you anticipate.