1. Time 2. Price There are two phases of every candle: 1. Protraction Phase (Deviation above/below the open--creating the wick of a candle) 2. Expansion Phase (Creation of the candle body) Here is the relationship between these two axis: The depth of manipulation is proportional to the expected expansion of the candle. The smaller the protraction phase (wick), the more time & range the candle has to expand. The larger the protraction phase (wick), the less time & range the candle has to expand. Generally speaking, this is why we prefer to trade small wick candles, as they support large bodies ~ Expansion. When we see large opposing runs in candles that reverse, we define this as a delayed protraction profile. Price utilizes the majority of its range & time in the manipulation phase. To trade a delayed protraction you must have three conditions met: 1. The reversal candle with a large wick must trade into a significant key level that supports a HTF reversal 2. A Two-Stage Crack in Correlation must be present at the reversal, which is universally true of all HTF reversal 3. You position yourself within an expansion candle, one with a small wick. This is one way I use Quarterly Theory A Compelling Example: Q4 Reversal followed 10AM DP Step-Wise Logic: i. 10:00 Opens with a large opposing run into a KL ii. We confirm the true reversal with 2 stage CiC iii. We align an expansion candle - 12:00 PM (H6/M90) I will be teaching you far more about protraction profiles in depth in my next YouTube video!
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
There are two axial considerations of a candle:
1. Time
2. Price
There are two phases of every candle:
1. Protraction Phase (Deviation above/below the open--creating the wick of a candle)
2. Expansion Phase (Creation of the candle body)
Here is the relationship between these two axis:
The depth of manipulation is proportional to the expected expansion of the candle.
The smaller the protraction phase (wick), the more time & range the candle has to expand.
The larger the protraction phase (wick), the less time & range the candle has to expand.
Generally speaking, this is why we prefer to trade small wick candles, as they support large bodies ~ Expansion.
When we see large opposing runs in candles that reverse, we define this as a delayed protraction profile.
Price utilizes the majority of its range & time in the manipulation phase.
To trade a delayed protraction you must have three conditions met:
1. The reversal candle with a large wick must trade into a significant key level that supports a HTF reversal
2. A Two-Stage Crack in Correlation must be present at the reversal, which is universally true of all HTF reversal
3. You position yourself within an expansion candle, one with a small wick.
This is one way I use Quarterly Theory
A Compelling Example: Q4 Reversal followed 10AM DP
Step-Wise Logic:
i. 10:00 Opens with a large opposing run into a KL
ii. We confirm the true reversal with 2 stage CiC
iii. We align an expansion candle - 12:00 PM (H6/M90)
I will be teaching you far more about protraction profiles in depth in my next YouTube video!