Candle Shunting
Case Study for Candle Shunting!.
At the end of the 24th Slide you will draw Momentum & Indecision (MI) Zones.
You may just change the way you ever looked in Price Flow.
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The Chart we will work on is here below.
I will try and explain each candle formed in it.
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As per Nimblr TA this is the strength candle marked with a star which has a Candle Body that is more than 50% of Candle Height. It is called a Momentum Candle and when seen on the breakout line is also referred as Breakout Candle.
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As a result of this Momentum or Strength Candle immediately MI Zones formed are here !
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Next slide is with the arrival of Indecisive Candle which has a Body less than 50% of Candle and could be PinBar, Dojis etc., Here on wards forget naming them.
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The next candle is strength candle marked by star in the direction of earlier trend
It’s open higher than close of previous strength Candle
This is case of Body Overlap
The tiny body indecisive candle provides the range Resistance and Support.
This is Candle Shunting
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The Momentum & Indecision Zones now are shown
Pink – Indecision Zone
Blue Momentum Zone
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In a way, Momentum Zones are values Zones covered by the Body of Momentum Candles.
Momentum Zones provide free price conductivity as if every price value is a free electron which can freely move on either side within the value zones.
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Indecisive Zones have their Highs and Low that can provide minor resistances and supports.
Next candle is a reversed direction strength candle and its high covers the free zone offered by conductivity of previous momentum candle.
The word locomotive is important as one ahead of the other and not in reverse direction.
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Although this is a strength candle it is not in locomotive manner as in a locomotive.
Send Questions after reading slide details too.
Do send them.
Next is strength candle in the direction of original trend and how Momentum Candle provides free rotation within the Body of Candle.
Note the role of Single Indecision Candle clubbed between two strength candle earlier.
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Note I am totally doing without naming any candles instead talking the core basic of Momentum and Indecision as Generic Names as a result you can forget names of candles.
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The next candle has an open which is a Gap down and a high that enters the free body flow range provided by previous strength candle
As the close is lower than the open of current candle it leaves a Body Gap between the two strength candles.
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Candle Shunting Rule:
Current Open must have common values between it and previous candle close. Here it is not and hence a case of Body Gap and not Candle Shunting.
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Though the immediate –previous close candle was not overlapped in value an earlier strength candle common value condition was met and that common value could be even one single point value.
Watch the horizontal line provided by Open of current candle. It provides overlap.
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Let me have a few questions at this stage.
Let me make it more memorable than the videos and webinar.
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Now the MI Zoning!
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Next strength falling candle arrives and its a case of Candle Shunting in a locomotive manner.
The C=O is acronym for Carbon-Oxygen atom double bond in our case previous close C and current candle Open.
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The MI Zoning now.
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The full fall is in a way has its Bodies Shunted.
The Blue Line draws connecting the Close of these strength body shunted candles.
Any Questions?
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We are halfway through.
Start keeping a tab on body shunted strength candles.
Note their Open and Close values and you can start fixing targets easily.
We will begin tomorrow after 10am!
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Candle’s Body Shunting post available here !
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SL is always as a rule in Nimblr TA as per the high and low of previous Indecision Candle. Here the low body candle between the tow strength candles is used for SL.
Whether we should initiate Trade as it enters to blue zone ?
Yes but with Tgt only as per open or close of the momentum candle that encompasses the body of the candle.
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