I thought this would be a good opportunity to show why and how I use the Monthly open of a candle to narrow down good trading opportunities.
The monthly candle opened and immediately started dumping. Price has not yet gone above the open, there is no wick above, a majority of candles make a wick both above and below the open.
This type of movement for me is bullish. It tells me price will create a wick eventually, I try to enter as close to the absolute low of that candle. By the time price moves back above the months opening price you’re already in a trade with a healthy distance between price and where I entered.
This is a very good technique that gives low risk swing trades. It’s served me well over the years.
The monthly candle opened and immediately started dumping. Price has not yet gone above the open, there is no wick above, a majority of candles make a wick both above and below the open.
This type of movement for me is bullish. It tells me price will create a wick eventually, I try to enter as close to the absolute low of that candle. By the time price moves back above the months opening price you’re already in a trade with a healthy distance between price and where I entered.
This is a very good technique that gives low risk swing trades. It’s served me well over the years.
