
CANDLES:
Each candle is defined by its relationship to the previous candle.
There are only 3 types of candle:
Inside candle- The candle is entirely within the high and low of the previous candle. An inside candle shows the market is at a point of indecision.
Directional candle- The candle extends above or below either the High or Low, but not both, of the previous candle.
Outside candle- The candle has broken both the high and low of the previous candle. An outside candle shows broadening price action.
They are called ACTIONABLE Strat patterns which means the "1" at the end is the open of the 3rd candle, and when it closes could potentially form the "2"
When the actionable pattern is forming it should be highlighted
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