CandlestickLearning

Candle Shunting

Candle’s Body Shunting is valid for momentum or Strength Candles in Nimblr TA Price Flow Analysis.

Bullish Strength Candle:

Whenever Close of a Star marked or Strength Candle closes above the Open with a Body Height greater than 50% of Candle Height i.e. BH>50%CH it is known as Bullish Strength Candle. (Fig.1)

Bearish Strength Candle:

Whenever close of a star marked or Strength Candle closes below the Open with a Body Height greater than 50% of Candle Height i.e. BH>50%CH it is known as Bearish Strength Candle. (Fig.1)

Fig.1 Bullish & Bearish Candle

WHAT DO WE MEAN BY SHUNTING?

What does Shunt mean?

It is an act of pushing or shoving something. (Fig.2)

Fig.2 Shunt

Like any train compartment, the two candles need to be shunted or towed. 

If we take the case of a moving train, we observe that it never moves in a ziz-zag form or the compartments are never overlapping/adjacent. It is one direction or unidirectional.

Similarly, two candles in a chart are never shunted or towed. They are never overlapping or adjacent or side-by-side.

In Nimblr TA, such movement of candles is referred  as Candle Locomotion (Refer Fig.3)

 
When does Body Shunting occur?

In Body Shunting, there are two types:

  • Rising Strength Candle
  • Falling Strength Candle
Rising Strength Candle

In case of Candle Shunting, the open of a rising strength candle is lower than or equal to the close of a previous highest closing rising Strength Candle in the rise, it is a Rising Strength Candle. (Fig.3)

 

Fig.3

Falling Strength Candle

In case of Candle Shunting, the Open of a falling price strength candle is higher than or equal to the close of a previous lowest closing falling Strength Candle in the fall, it is a Falling Strength Candle. (Fig.4)

Fig.4

In Body Shunting,
  • The candles in shunting are always Strength Candles (Not valid if an Indecision Candles appears in between them).
  • The close is always of previous candle and open of the next/new/current candle.
  • The candle bodies are placed like locomotive wagons one ahead of the other.
  • Between two body shunted strength candles they may have one or multiple ‘in-between’ candles (refer Fig.5)
  • the close is connected to open. Hence, the symbol for Body Shunting is ‘C=O’.

Fig.5 In-Between Candle

Note: The In-Between candle can be strength or non-strength candles.

What do you mean by Strength Candle appear with Body Overlap?

As mentioned earlier, “Candle Shunting are always Strength Candles and not valid for Indecision Candle in between them”.

Let us see what it means. 

In case of  Rising Bullish Price Flow:

In Fig.6, the “O” and “C” signify the Open and Close. The Candle is “Green”. A line that starts from “C” to have crossed the next Strength Candle in such a manner that it is above the the ‘Open of the next Strength Candle’.

As a result, it is a body overlap actually between two strength Candles.

So Candle Shunting is a kind of candle locomotion and a body overlap.

Fig.6

In case of Falling Bullish Price Flow:

In Fig.6, the “O” is the Open and “C” is Close is lower.

A line that starts from “C” is shown to have crossed  the next Strength Candle in a manner that it is below the open of the next Strength Candle.

As a result, the Body overlap is between two candles. One can express as two Strength Candle appearing with a Body Overlap in a falling price flow in a locomotive manner.

Fig.7

When is it not a case of Candle Shunting?

In Fig.8, they are in the common body range and therefore it is not a case of Body Shunting.

Fig.8

In Fig.9, the Open or Close of next candle is completely out of the range of previous candle and avoids Body Shunting all together, to give a Body Gap between two strength candles.

Fig.9

SIGNIFICANCE of Body SHunting
  • Provides a connect between Open and Close
  • Ensures two Strength Candles to be conductive  to price flow

Candle Shunting classifies Price Flow in two distinct value ranges

  • Momentum Range
  • Indecision Range

To identify the Price Flow direction, Blue Line connecting the close of Body Shunted Strength Candles are drawn. Fig.10

Fig.10

And the next chart is the Indecision Zones for the same chart. Fig.11

Fig.11

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