TommyXAU Educational - What i mean by clean range
Good afternoon gold gang, hope you're having a good weekend.
I thought id hop on to share with you a piece of information of what i mean by clean range. Ok ..
Say you have 2 key levels in price .. we have had a big news event causing a big red candle to the left hand side. This has left what is called an imbalance. An imbalance is where the wicks of the previous and after candle don't meet. Backtest that one yourself and see how many times these imbalances get filled.
Price is coming back up and closes above the key level .. it is now a high probability that price will come up and fill that imbalance and the clean range.
I call it clean as there is no traffic or hurdles that should stop price on its way up. Again, adding to the probability.
Simple as that really guys ..
Please leave a like if it was of any help to you and ill see you this evening for market open!
TommyXAU
I thought id hop on to share with you a piece of information of what i mean by clean range. Ok ..
Say you have 2 key levels in price .. we have had a big news event causing a big red candle to the left hand side. This has left what is called an imbalance. An imbalance is where the wicks of the previous and after candle don't meet. Backtest that one yourself and see how many times these imbalances get filled.
Price is coming back up and closes above the key level .. it is now a high probability that price will come up and fill that imbalance and the clean range.
I call it clean as there is no traffic or hurdles that should stop price on its way up. Again, adding to the probability.
Simple as that really guys ..
Please leave a like if it was of any help to you and ill see you this evening for market open!
TommyXAU