Concepts
Concepts

Lesson 4 : Equilibrium

Lesson 4 : Equilibrium

Lesson 4 : Equilibrium

Beginner

Beginner

Beginner

3 min

3 min

3 min

Equilibrium

Equilibrium

Equilibrium

What is Equilibrium? Equilibrium is the 50% level of a previous candle’s range or wick. This can be marked using a Fibonacci tool set to 0.5. For price to continue higher or lower, the EQ should be respected. Respect in this context is determined on a lower timeframe by confirming that price does not close through that level.

What is Equilibrium? Equilibrium is the 50% level of a previous candle’s range or wick. This can be marked using a Fibonacci tool set to 0.5. For price to continue higher or lower, the EQ should be respected. Respect in this context is determined on a lower timeframe by confirming that price does not close through that level.

What is Equilibrium? Equilibrium is the 50% level of a previous candle’s range or wick. This can be marked using a Fibonacci tool set to 0.5. For price to continue higher or lower, the EQ should be respected. Respect in this context is determined on a lower timeframe by confirming that price does not close through that level.

Candle Equilibrium

Candle Equilibrium

Candle Equilibrium

For candles with a large body and a small wick, mark the EQ by measuring from the wick high to the wick low.

For candles with a large body and a small wick, mark the EQ by measuring from the wick high to the wick low.

For candles with a large body and a small wick, mark the EQ by measuring from the wick high to the wick low.

Wick Equilibrium

Wick Equilibrium

Wick Equilibrium

If a candle with a large wick closes on its wick, with the following candle opening on the wick of the previous candle, mark the equilibrium of the wick.

If a candle with a large wick closes on its wick, with the following candle opening on the wick of the previous candle, mark the equilibrium of the wick.

If a candle with a large wick closes on its wick, with the following candle opening on the wick of the previous candle, mark the equilibrium of the wick.

If a candle with a large wick closes away from its wick, with the following candle opening away from the wick of the previous candle, mark the EQ using the entire range of the candle.

If a candle with a large wick closes away from its wick, with the following candle opening away from the wick of the previous candle, mark the EQ using the entire range of the candle.

If a candle with a large wick closes away from its wick, with the following candle opening away from the wick of the previous candle, mark the EQ using the entire range of the candle.

The standard for trading education and guidance

2025 The Market Lens - All Rights Reserved

The standard for trading education and guidance

2025 The Market Lens - All Rights Reserved

The standard for trading education and guidance

2025 The Market Lens - All Rights Reserved