question from readers
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Thank you for the reply, the second video its a bit more clear, when we consider same color continuation.
As i had mention i have been with difficulties to identify the price direction and decided to wait few times when comes the pattern {white,black,black,white} and {black,white,white,black} please see pictures attached. Because the uncertainty of the price range changing or if the candle loosing direction instead continuing in the trend.
But again your second video was more clear.
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everybody struggle with difficulties to identify the price direction.
the key is ambush and put stop order to price moving process.
do not predict next price action. price 100% go outside.
here is ex.
1.2.3.4= candlestick pattern.
if put buy stop order to No.3 candlestick high, hit order at No.5
next candlestick go up and few candlesticks later price came back 1.2.3.4 candlestick pattern inside. (1.2.3.4 high to low range)
7.8.9.10= candlestick pattern.
if put sell stop order to No.7 candlestick low, hit order at No.11
next candlestick go up and few candlesticks later price came back 7.8.9.10 candlestick pattern inside. (7.8.9.10 high to low range)
price action always inside or outside.
There are 3 break out
・straight break out
・fake break out
・opposite break out
No.5 = straight break out (1.2.3.4 high break and higher close)
No.11=fake break out (7.8.9.10 low break, came back and 7.8.9.10 inside close )
No.6 =opposite break out(1.2.3.4 low break and lower close)
if put sell stop order to No.2 candlestick low then at No.6 hit order and price go down and profit.
so if price go outside (higher close or lower close) specific candlestick pattern then
put stop order to opposite side, ambush.
so not necessary predict next candlestick color or direction in real time
As time passes trading edge increase for stop pending order.
one more important things
trend = 3 same colour ( white white white or black black black)
A = white bear candlestick
B = black bull candlestick
C = black bull candlestick
D = white bear candlestick
E = white bear candlestick
A B= different colour
B C= same colour
C D = different colour
D E = same colour
but next candlestick black
so no trend
F G= different colour
G H= same colour
H I = different colour
I J = different colour
no 3 same colour around F G H I J
this means range.
so wait 3 same colour outside close then put stop order to specific candlestick high or low
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