Trading Patiently | Cam
Trading Patiently | Cam

@tradngpatiently

9 Tweets 131 reads Aug 31, 2024
Decoding OHLC/OLHC: Candle Anatomy
By the end of this thread, you will understand the anatomy of candles and how to ๐—ณ๐˜‚๐—น๐—น๐˜† ๐—ฐ๐—ฎ๐—ฝ๐—ถ๐˜๐—ฎ๐—น๐—ถ๐˜‡๐—ฒ on OHLC/OLHC.
A Thread ๐Ÿงต
๐—ช๐—ต๐—ฎ๐˜ ๐—œ๐˜€ ๐—ข๐—›๐—Ÿ๐—–?
OHLC stands for Open-High-Low-Close. This is the anatomy of a BEARISH candle. A bearish candle opens, makes the high of the candle, expands making the low of the candle and then closes.
๐—ช๐—ต๐—ฎ๐˜ ๐—œ๐˜€ ๐—ข๐—Ÿ๐—›๐—–?
OLHC stands for Open-Low-High-Close. This is the anatomy of a BULLISH candle. A bullish candle opens, create the low of the candle, expands making the high of the candle and then closes.
๐—ช๐—ต๐˜† ๐—œ๐˜€ ๐—ง๐—ต๐—ถ๐˜€ ๐—ฆ๐—ผ ๐—œ๐—บ๐—ฝ๐—ผ๐—ฟ๐˜๐—ฎ๐—ป๐˜ ๐—ง๐—ผ ๐—จ๐—ป๐—ฑ๐—ฒ๐—ฟ๐˜€๐˜๐—ฎ๐—ป๐—ฑ?
When you are able to anticipate the anatomy of candle sticks, you can find endless opportunities in the markets.
๐—ฃ๐—ผ๐˜„๐—ฒ๐—ฟ ๐—ข๐—ณ ๐Ÿฏ
Price is fractal. Once you see it you wonโ€™t unsee it.
Hereโ€™s your homework: go into your charts, pick any daily candle, mark out the OHLC/OLHC, then drop into the hourly chart. Observe the formation of this daily candle through the hourly candle sticks.
๐—˜๐—ป๐˜๐—ฟ๐˜† ๐—–๐—ผ๐—ป๐—ณ๐—ถ๐—ฟ๐—บ๐—ฎ๐˜๐—ถ๐—ผ๐—ป
Mastering this concept will allow you to effectively observe the manipulation whilst positioning yourself to capitalize on the distribution.
๐—ง๐˜‚๐—ฟ๐˜๐—น๐—ฒ ๐—ฆ๐—ผ๐˜‚๐—ฝ
This is a liquidity grab that occurs during OHLC/OLHC. The candle manipulates lower, sweeping the swing low, before distributing in its intended direction.
๐—–๐—ผ๐—ป๐—ฐ๐—น๐˜‚๐˜€๐—ถ๐—ผ๐—ป
When the draw on liquidity is clear, you can use this concept to make sniper-like executions.
This is how you frame daily & weekly profiles. Once you understand this concept deeply, you will start to anticipate the candleโ€™s formation in real-time.
Ready to elevate your trading? ๐Ÿš€
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