The 3-month and 12-month candle retest and retracement concept is a higher-timeframe market analysis approach that focuses on how price reacts after forming major quarterly and yearly candles. The high, low, open, and midpoint of these candles function as critical structural levels that often act as magnets for price.
After a candle closes, price frequently retests these levels in subsequent periods before continuing in the prevailing trend, reflecting institutional participation and liquidity rebalancing. Retracements toward these higher-timeframe levels are considered a natural and necessary process within trending markets.
At the end of major sell cycles, a strong retracement is expected, as selling pressure becomes exhausted and liquidity conditions shift. These deeper retracements often target the candle open or midpoint and may mark the transition from distribution to accumulation, preceding trend stabilization or reversal. This behavior provides valuable context for identifying high-probability zones for long-term positioning and risk control.
After a candle closes, price frequently retests these levels in subsequent periods before continuing in the prevailing trend, reflecting institutional participation and liquidity rebalancing. Retracements toward these higher-timeframe levels are considered a natural and necessary process within trending markets.
At the end of major sell cycles, a strong retracement is expected, as selling pressure becomes exhausted and liquidity conditions shift. These deeper retracements often target the candle open or midpoint and may mark the transition from distribution to accumulation, preceding trend stabilization or reversal. This behavior provides valuable context for identifying high-probability zones for long-term positioning and risk control.
Note
3 Months Hammer is expected to be formed in the Time from Aug to Oct starting a Rally toward 8.0
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.