PSYCHOLOGY BEHIND CANDLESTICK FORMATION:

 PSYCHOLOGY BEHIND CANDLESTICK FORMATION:








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explain “Liquidity”

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This is not an Order Block, this is how the “Market Makers” run a $12 trillion market. Let me break it down for you..

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  When you think of Order Blocks, you see a pattern: Every Up Candle is a -OB Every Down Candle is a +OB Untrue. Because an Order Block (OB) serves as a frame of reference — indicating where price is likely to be drawn from or to. So there has to be a narrative behind the OB ...It’s not every Up Candle that is a -OB. ...It’s not every Down Candle that is a +OB. So, here’s how you pick the right ones: The down close candle(s) that raid sell-side liquidity. And tap into (or nest instead) a HTF support level (Discount Array) …Which becomes valid once we trade back through the OPENING PRICE of the down close candle Tip: If a gap forms directly after, it’s high probability Having picked the right Order Block by building a narrative behind it — gets us what we are looking for, a nice reaction... like this...
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