It’s kind of a continuation or I should say it works well in continuation. My strategy is to analyze 5 H4 candles. Let’s say the price is moving up, in this case my Algo looks for the last 2,3 or 4 candles to check the body size and direction. If bodies are positive with small wicks, then it takes a short position assuming the next candle will go down. The assumption is based on the fact that prices don’t move in up/down direction for long and take breaks before proceeding further.
I’m back testing my Algo to determine trends based on lower timeframe. However, it has not yet successfully identified directions. It is still work in progress. Actually, now your question has made me work on it more diligently and also explore a higher timeframe. BTW, I have always considered H4 as a higher timeframe and not thought about daily or weekly.
@dudebro , nothing is secret here, I have kind of explained my strategy in this post. There are other candle patterns that I consider however they all have the same base rule that prices don’t just go up up or down down. It has to take a break.
In addition, I really like that people are taking interest in this thread. I appreciate your questions & feedback.
Looking forward to more questions and feedback.