Additional
Additional
Lesson 29 : Candle 2 Closure Type
Lesson 29 : Candle 2 Closure Type
Lesson 29 : Candle 2 Closure Type
Beginner
Beginner
Beginner
3 min
3 min
3 min
Types of Candle 2 Closures
Just because price forms a candle 2 closure does not mean it is valid to trade. The focus should be on specific types of candle 2 closures, ideally paired with clean lower timeframe structure. Most often, this means seeking a candle 2 reversal candle with a strong close, supported by a lower timeframe V-shaped reversal.
Just because price forms a candle 2 closure does not mean it is valid to trade. The focus should be on specific types of candle 2 closures, ideally paired with clean lower timeframe structure. Most often, this means seeking a candle 2 reversal candle with a strong close, supported by a lower timeframe V-shaped reversal.
Just because price forms a candle 2 closure does not mean it is valid to trade. The focus should be on specific types of candle 2 closures, ideally paired with clean lower timeframe structure. Most often, this means seeking a candle 2 reversal candle with a strong close, supported by a lower timeframe V-shaped reversal.
Here you can see an ideal candle 2 closure structure. The reversal candle closes bullish for a bullish candle 2 or bearish for a bearish candle 2. On the lower timeframe, this is paired with a clean V-shaped reversal, or expansion met with expansion.
Here you can see an ideal candle 2 closure structure. The reversal candle closes bullish for a bullish candle 2 or bearish for a bearish candle 2. On the lower timeframe, this is paired with a clean V-shaped reversal, or expansion met with expansion.
Here you can see an ideal candle 2 closure structure. The reversal candle closes bullish for a bullish candle 2 or bearish for a bearish candle 2. On the lower timeframe, this is paired with a clean V-shaped reversal, or expansion met with expansion.
Here is an example of a strong candle 2 closure, but the lower timeframe structure is not clean. Instead of the desired V-shape, the price forms a consolidation or retraces higher, making it less ideal for entry.
Here is an example of a strong candle 2 closure, but the lower timeframe structure is not clean. Instead of the desired V-shape, the price forms a consolidation or retraces higher, making it less ideal for entry.
Here is an example of a strong candle 2 closure, but the lower timeframe structure is not clean. Instead of the desired V-shape, the price forms a consolidation or retraces higher, making it less ideal for entry.
This type of candle 2 closure is very similar to the ideal candle 2 closure, but the distinction lies in the candle color. In this case, the bullish candle 2 closes on its wick, and the bearish candle 2 also closes on its wick.
This type of candle 2 closure is very similar to the ideal candle 2 closure, but the distinction lies in the candle color. In this case, the bullish candle 2 closes on its wick, and the bearish candle 2 also closes on its wick.
This type of candle 2 closure is very similar to the ideal candle 2 closure, but the distinction lies in the candle color. In this case, the bullish candle 2 closes on its wick, and the bearish candle 2 also closes on its wick.
This is a type of candle 2 closure that should be avoided. Candle 2 fails to form a proper reversal candle and does not establish reversal structure on the lower timeframe, leaving no reliable basis to trust the swing formation.
This is a type of candle 2 closure that should be avoided. Candle 2 fails to form a proper reversal candle and does not establish reversal structure on the lower timeframe, leaving no reliable basis to trust the swing formation.
This is a type of candle 2 closure that should be avoided. Candle 2 fails to form a proper reversal candle and does not establish reversal structure on the lower timeframe, leaving no reliable basis to trust the swing formation.
This type of candle 2 closure should also be avoided. Candle 2 forms as a consolidation candle rather than a reversal, making it difficult to trust that a reversal has formed without additional confirmation.
This type of candle 2 closure should also be avoided. Candle 2 forms as a consolidation candle rather than a reversal, making it difficult to trust that a reversal has formed without additional confirmation.
This type of candle 2 closure should also be avoided. Candle 2 forms as a consolidation candle rather than a reversal, making it difficult to trust that a reversal has formed without additional confirmation.
This type of candle 2 closure is not ideal for trading within candle 3. The purpose of a candle 2 closure is to establish a reversal that sets up expansion in candle 3. Since candle 2 already provides both the reversal and the expansion, the move is considered missed. Entering in candle 3 under these conditions increases the likelihood of getting caught in consolidation, retracement, or reversal.
This type of candle 2 closure is not ideal for trading within candle 3. The purpose of a candle 2 closure is to establish a reversal that sets up expansion in candle 3. Since candle 2 already provides both the reversal and the expansion, the move is considered missed. Entering in candle 3 under these conditions increases the likelihood of getting caught in consolidation, retracement, or reversal.
This type of candle 2 closure is not ideal for trading within candle 3. The purpose of a candle 2 closure is to establish a reversal that sets up expansion in candle 3. Since candle 2 already provides both the reversal and the expansion, the move is considered missed. Entering in candle 3 under these conditions increases the likelihood of getting caught in consolidation, retracement, or reversal.
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The standard for trading education and guidance
2025 The Market Lens - All Rights Reserved
The standard for trading education and guidance