Disliked1) Incorrect. Your candles and the big ones in particular are formed when there is a disequilibrium between demand and supply, i.e buyers and sellers. An equilibrium state is easy to spot on the chart. a really tight consolidation zone with low volumes is a good indication that traders more or less agree on the price the security is being traded at, currently. Unfortunately because of so many factors that affect this trader "sentiment" such as news, technical levels and bogus trading by the day dreamers this state will often break up into a disequilibrium...Ignored
By the way, nice to see you here. Are you still active in the James16 thread? I was also writing there a while ago and am still a member of Jim's PF.
Thanks J16, Sam Seiden, Udine and Jacko