Guide to candle closures.
Written by:
Silky
Twitter:
@traderilky
1) General info
2) Reversal
3) Continuation
4) Caution
1- General Info
If you’ve been in the ICT game for a while now you’ve probably heard
“wicks do the damage, bodies tell the story”. If you haven’t, now you have.
Using bodies/their closes and candle patterns to tell us a story about where
the market is going next has been used since the candlestick charts have
existed.
Using them properly on the HTF is the key to unlocking daily bias.
There have been so many overcomplications/repackages/whatever you
want to call them.
At Its core it’s a very simple concept and there are 2 simple parts:
A)REVERSAL PART [swing high/swing low]
1) Close inside body of previous day’s candle creating a swing
low/high
2) Trade the next day [Expect it to be a classic buy/sell day]
B)CONTINUATION PART
1) Close above/below the previous day’s candle’s high/wick
2) Next day is likely going to be a continuation
2- Reversal
We anticipate “pattern” / sequence to occur at a KEY level and a KEY time.
We can use it in combination with “weekly profiles”. If you had time to
review my posts about weekly profiles/daily bias you can find me saying
“Swing low” and “Closes above the PDL/PDH”
Which would look like this:
Then I recommend trading the next day - 3rd candle and expect it to be a
classic buy/sell day
Using this in combination with weekly profiles is extremely powerful.
We wait for the high impact news event and manipulation to take
place, we wait for the day to close, if we close inside the candle and
have an ITF [Intermediate time frame - H1/H4] MSS/CISD -> Next day
For more about this find the “HTF Mastery PDF” in my telegram, I’m
pretty sure i cover it in the weekly profiles section. Or search through
my tweets about weekly profiles.
3- Continuation
The continuation part of candle body closure is used to find continuations,
who would have thought right.
We can use it AFTER the reversal part and it would look something like this
So in theory, you caught the trade after the reversal pattern occurred, and
you’re looking for an entry the next day as well.
Example to visualize:
Tuesday made HOTW, Wednesday we went lower, Thursday we go
lower.
The day closed, we closed below the PDL and we can look for a
retracement into the range and then drop lower tomorrow [Classic sell day].
You don’t have to use it right after obviously, If we’re trending and we're
closing above PDH/PDL - we're showing strength / see obvious orderflow.
It would look something like this:
We’re closing above PDH’s and we’re moving higher the next day.
Same logic for when we’re bearish:
4- Caution
I have to put this here because some of you will read this and go instantly
into the charts and blow their account.
DON’T use this pattern alone.
This is just a way to visualize the market. It works amazing, yes. But you
want to be using other things as well.
The way I use it is WITH weekly profiles: Swing low -Tuesday/Wed LOTW
for example and then use the continuation part for the rest of the week. - IF
IT’S GIVEN.
IRL-ERL
Dealing ranges
SMT
….
Incorporate the candle body closure TO your HTF analysis routine, don’t
just swap it and make it the only thing you do.
If you want to learn more, once again, check the PDF in my telegram or go
find 100s of threads I wrote for free on twitter about daily bias, weekly
profiles etc.
