1. Higher Time Frame Wicks = Lower Time Frame FVGs
A wick on a higher time frame often represents an imbalance or Fair Value Gap (FVG) on a lower time frame, indicating a temporary inefficiency in price delivery that the market may revisit.
2. Fair Value Gaps Signal Order Flow Shifts
FVGs on lower time frames reflect a shift in order flow—usually aggressive buying or selling—which causes price to dislocate. This dislocation is often the origin of a wick seen on higher time frames.
3. Rejection Candle Predicts Expansion
A rejection candle, often with a long wick, signals that price has reacted to an FVG. If the rejection aligns with a shift in order flow, the next candle is likely to expand in that direction, providing a potential entry with a clear directional bias.
A wick on a higher time frame often represents an imbalance or Fair Value Gap (FVG) on a lower time frame, indicating a temporary inefficiency in price delivery that the market may revisit.
2. Fair Value Gaps Signal Order Flow Shifts
FVGs on lower time frames reflect a shift in order flow—usually aggressive buying or selling—which causes price to dislocate. This dislocation is often the origin of a wick seen on higher time frames.
3. Rejection Candle Predicts Expansion
A rejection candle, often with a long wick, signals that price has reacted to an FVG. If the rejection aligns with a shift in order flow, the next candle is likely to expand in that direction, providing a potential entry with a clear directional bias.
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