Very useful techniques to learnI have recently posted several posts around mechanical and simple charts. This is another insight into some professional techniques that are not often shown.
Gann talked about High and low candles and opposing ticks.
Lowest Tick of the Highest Bar: This refers to the lowest price point (or low tick) of the highest price bar (or highest price period) on the chart. It indicates a crucial support level. If the price falls below this point, it may signal a downward trend or a breakdown.
Highest Tick of the Lowest Bar: Conversely, this refers to the highest price point (or high tick) of the lowest price bar (or lowest price period). This represents a key resistance level. If the price rises above this level, it may indicate an upward trend or a breakout.
Here's an image showing this in an uptrend.
And another for a downtrend.
Then what you would expect from this, would be a move similar to this and of course you can't expect it every time. But to appreciate it, you need to understand the logic as to why this is important in the first instance.
The simple explanation of that is in an uptrend that lowest tick of the highest bar was in fact the exact area buyers failed and sellers took control. Obviously, the inverse is true of a downtrend. The highest point of the lowest candle, means buyers are back pushing prices higher.
Into the future you MIGHT but not always see these levels as support or resistance.
When you overlap this with the mechanical techniques, you can use this for range entries. Here's a post on mechanical techniques.
==========================================
Second tip is to do with volume.
Many people seem to have volume on their chart, but don't really know how to utilise it.
Now, imagine the areas I mentioned in the first tip. As price nears these zones (other other zones) order blocks, supply or demand, fib levels.
If you could quickly identify what story volume is trying to tell you. Then there is a huge benefit to know how you need to react to the price action.
In this image; Look at the spikes in volume until the orange arrow point.
What you can see from this next image, is the orange arrow is the turning point.
For it's next stop after breaking through the PoC of the range from the prior low to its high. You can draw a line, extended from the highest tick of the lowest candle.
Price comes back, and as explained in the example above. Buyers step back in and drive the price directly away from this level.
Now; let's go one step further.
In this image I have the volume profile on the left representing the swing low to high and then the profile on the right from that high to the fresh swing low.
You can see from the sell side pressure where price has interest to both parties.
Next you have both lines drawn on the chart of the opposing candles, like this.
Here. we can look at if the market is seeking outside or inside liquidity.
However, if you look back at the volume on the bottom of the chart. Are we seeing green candles and volume increasing? or red candles with volume increasing? This is where the second tip becomes very, very useful.
If you can identify the phase of internal or external, areas of interest. You can confirm this with volume clues on the chart and you will find yourself on the right side of the trade more often than not.
Have a great week all!
Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principal trader has over 25 years' experience in stocks, ETF's, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
