DoNotFollowThis

Can you repeat the same actions for ten consecutive time?
If yes, then you can make profits in trading. The actions must be developed by self.

Forget the game think about the rules.
Self-motivation is very important.

After pondering for a whole week, this is what I discovered.

GBP/CAD H1

A move within a move.

Nice down move H4.

GC M15
selling pressure.

Theory -
If a candlestick or price does not occur logically while reading the chart then that candle can be made the origin or reference candle.

Analyse this weekend.

Different people see different things on the same chart.

Candle one is formed after a bull candle. Price had to move down to find the buyers and convert the selling into buying pressure candle to a positive candle. After this happens, the candle 1 price range becomes a buying zone. But after becoming a buying zone it could not stop the sellers and price did not rise further as it should after a buying pressure candle. As can be seen that price was too high for buying, price came down in search of buyers. Buyers in the previous candle were not found when price at candle two was selling. Buyers were found at the bottom of the second candle.
http://https://www.forexfactory.com/...0&d=1504761760
Candle after second candle can be the new reference candle as price is narrowing and buyers and sellers are finding an equilibrium.

Weekly digest -

Find a reference candle

Should find a method to find the reference candle.

For me it is absolutely important to know "the why" before entering a trade because trade should make some sense to me.

The idea is lots of candle with wicks found showing selling pressure but closing is positive. So, the first candle with negative closing is where bears entered in good numbers. But next candle is a bull candle which means buyers are still around. This bull candle is followed by a big body bear candle which defines the direction of the new rally. So, in a way the first bear candle is the price at which rally started.

Why is this price range so important?

A cluster of price or candlestick. Price narrowing.

expecting consolidation now

look for a candlestick with same open and close price

A bear candle in a bull rally could mean that people are searching levels/zones to sell. But the bids are not strong enough at current levels. The next time price enters the same zone/level, price action can be expected to be the same as when price was there before. One thing can be noticed when such a movement takes place is price will keep hitting a particular level/zone.

Now the question is - how to trade this scenario and how to predict this?

A trade can be taken after formation of next candle. Also an assumption can be made to predict the type of candle formation next.
Scenario 1 - Candle following the bear candle is bull candle in the direction of the existing current rally.
In this case i.e. if prediction is same as above then buy.
Scenario 2 - Candle following the bear candle is a bear candle. This can be predicted by looking at the wick of the bear candle for selling pressure.
In this case trade the wick of the bear candle.
Scenario 3 - Candle following the bear candle is a candle with big wicks.
If wick is on the top of the body of bear candle with negative closing then it is selling pressure and vice-versa.
(Start thinking about next candle whenever you see a candle with wick)
Scenario 4 - Candle following the bear candle is a bull engulfing candle or a offers only candle.
Trade the engulfing candle and anticipate a candle with wicks.
Also if price found to be moving sideways then consolidation might be happening.

(engulfing) + (long wick candles) + (only bids/offers) + (end of HH HL or LH LL)= end/beginning of a move
engulfing to show strength.
long wick candles to show uncertainty + buying/selling pressure.
only bids/offers to confirm the direction of the move.
end of HH HL or LH LL to confirm the end of existing rally.
^^ All this will happen in 4-5candles

Why would you buy here?
How to find the move size?
How would you trade this?

Trade idea -
If a new LH LL is to be made then a bearish engulfing like candle might form (without wicks) when trading opens.
Candle with wicks followed by only bid/offers candle can be used to determine direction
What does it mean when a bull candle appears in bear rally and vice-versa?

It is showing that price is converging to a level where buyers and sellers are both agreeing to the price. This can be thought of as a stable price if price stays within a small zone. Next couple of candles maybe with wicks showing uncertainty found at the start of a move.

Today I will try to predict the candle to be formed after current candle.

Price moved downwards after 'only offers candle' so new sellers were found. Next candle maybe a candle showing uncertainty i.e. candle with wicks or downwards candle because sellers are still in the market.

Normal body candle and other candles.

When and where buying and selling pressure found in a chart?

use market profile.

how do I put market profile on a chart?

If my understanding is correct then if price is below the central price i.e. where price traded for most time then price could rise further. So, a buy trade will make sense. Similarly for when price is above it can be sold.

Theory - Market is always trying to find a price agreed by both buyers and sellers. This equilibrium can be seen in a candle stick with almost same open and close. As soon as this equilibrium is attained, price will start moving in the direction of following move. Following move can be a result of buying pressure candle or selling pressure candle at the equilibrium point. If equilibrium is attained after buying pressure candle then next candle maybe a bull candle and opposite for selling pressure candle. Next candle can also be a uncertainty candle.

At times the candle following buying pressure candle maybe followed by selling pressure candle. In such cases assumption can be made that all buying pressure has been consumed by the new candle and new sellers have entered the market.

The only reason I can find for price to act this way is not enough buyers are found and market is going down to find more buyers.
If price needs to move up then it would move up before going down after a bullish signal is given by the market.

Look at the price market goes again and again and take a decision to buy/sell accordingly. If it comes down after hitting a price then sell and vice versa.
Keep it simple i.e. naked chart and reading quotes
you do not need to take every trade in the market. Do not rush while taking a position.

How to find the origin of a move?

An assumption can be made that a pin bar(equilibrium candle) with equal shadows on both sides or a series of uncertainty candle can be the origin of a move.

Can you repeat the same actions for ten consecutive time?
If yes, then you can make profits in trading. The actions must be developed by self.

Forget the game think about the rules.

Candle one is formed after a bull candle. Price had to move down to find the buyers and convert the selling into buying pressure candle to a positive candle. After this happens, the candle 1 price range becomes a buying zone. But after becoming a buying zone it could not stop the sellers and price did not rise further as it should after a buying pressure candle. As can be seen that price was too high for buying, price came down in search of buyers. Buyers in the previous candle were not found when price at candle two was selling. Buyers were found at the bottom of the second candle.

Assumption-
Candle three can be thought of as a reference candle because of its small range of price. So, the price moved downward within candle 3. Therefore price over shot the equilibrium by making a down move. So, bias currently is to the downward.
But the candle after reference candle is upwards. So, to gain an equilibrium market should have to move upwards.

Price moves in a manner to find equilibrium between buyers and sellers. Once the equilibrium is achieved, price will move to either up or down direction.
Buying is when people think price is low enough and selling is when price is high enough.

EU. Sellers here but price is rising. sellers are being dominated by buyers.

Which questions come to mind when a trade is open?

cool journal.

Thanks candyman752.
Your trade explorers have nice profits. Keep it up.!

every price move is a agreement between buyer and seller which are constantly looking for a equilibrium in the market. Opening price of a candle is the reference price or equilibrium price.

Equilibrium is the difference between the open and close price. Difference between the open and close price of reference candle is the price by which perfect equilibrium could not be found. So, how will the equilibrium be achieved?
Equilibrium is when open and close price are same. So, if the difference in price is to be zero then the next candle will be a bull candle if difference is negative and bear candle if the difference is positive.

Some analysis