I aim to make this simple to understand and help someone with understanding how the Candlesticks can be utilised for analysis.
In a bullish candle you have Open, Low, High Close and in a bearish candle, you have Open, High, Low Close.
The only thing you can be certain of is the Time that candle opens and closes.
Now imagine a Weekly candlestick. Your bias is bullish, and trying to figure out where to buy.
I would advise looking at the buying opportunities which present themselves below the opening price.
You are looking to be entering in the Wick of the Weekly candle.
If you can find yourself buying in the Wick below the Opening price of a Weekly candle, you’ll have a possibility of catching the Low of the week and riding the Weekly candle up to it’s close or your target of choice.
This can also be the case for the Low of the day, on a Daily candle.
Now very important to remember you will require confluence with your trading model to increase the probabilities and depends on your model itself, however this can assist with increasing RR on trades.
Hope this helps in some way!
