OHLC
OHLC
Lesson 1 : Reversal Anticipation
Lesson 1 : Reversal Anticipation
Lesson 1 : Reversal Anticipation
Advanced
Advanced
Advanced
2 min
2 min
2 min
After consecutive expansion or hitting a key level, we can expect a new phase of price. In this phase, reversal candles will form, providing opportunities to trade either a retracement or a full reversal.
After consecutive expansion or hitting a key level, we can expect a new phase of price. In this phase, reversal candles will form, providing opportunities to trade either a retracement or a full reversal.
After consecutive expansion or hitting a key level, we can expect a new phase of price. In this phase, reversal candles will form, providing opportunities to trade either a retracement or a full reversal.
Reversal Into Expansion Candle
Reversal Into Expansion Candle
Reversal Into Expansion Candle
If Candle 1 hits a key level and closes as an expansion candle, then Candle 2 will open near Candle 1’s high, reverse off that high, and create a small wick, which allows price to reverse and expansion in the same candle.
If Candle 1 hits a key level and closes as an expansion candle, then Candle 2 will open near Candle 1’s high, reverse off that high, and create a small wick, which allows price to reverse and expansion in the same candle.
If Candle 1 hits a key level and closes as an expansion candle, then Candle 2 will open near Candle 1’s high, reverse off that high, and create a small wick, which allows price to reverse and expansion in the same candle.
If Candle 2 opens near a key level, it will open high, sweep Candle 1’s high into the key level, then reverse creating a small wick, which allows price to reverse and expansion in the same candle.
If Candle 2 opens near a key level, it will open high, sweep Candle 1’s high into the key level, then reverse creating a small wick, which allows price to reverse and expansion in the same candle.
If Candle 2 opens near a key level, it will open high, sweep Candle 1’s high into the key level, then reverse creating a small wick, which allows price to reverse and expansion in the same candle.
Reversal Candle
Reversal Candle
Reversal Candle
candle 2 will open high into a key level, reverse creating a large wick. we look to trade back into the range or opening price, or trade candle 3 continuation.
candle 2 will open high into a key level, reverse creating a large wick. we look to trade back into the range or opening price, or trade candle 3 continuation.
candle 2 will open high into a key level, reverse creating a large wick. we look to trade back into the range or opening price, or trade candle 3 continuation.
Consecutive Expansion
Consecutive Expansion
Consecutive Expansion
After three or more consecutive expansion candles, we can anticipate phase of price to develop. If price also reaches a relevant key level at the same time, it becomes very likely that this new phase will occur.
After three or more consecutive expansion candles, we can anticipate phase of price to develop. If price also reaches a relevant key level at the same time, it becomes very likely that this new phase will occur.
After three or more consecutive expansion candles, we can anticipate phase of price to develop. If price also reaches a relevant key level at the same time, it becomes very likely that this new phase will occur.
New Phase
New Phase
New Phase
A reversal off the previous candle’s high can serve as the trigger for a new phase of price. If Candle 2 forms with a small wick, price can expand back into the range. If Candle 2 forms with a large wick, price may return to its open, and Candle 3 expansion is likely to follow.
A reversal off the previous candle’s high can serve as the trigger for a new phase of price. If Candle 2 forms with a small wick, price can expand back into the range. If Candle 2 forms with a large wick, price may return to its open, and Candle 3 expansion is likely to follow.
A reversal off the previous candle’s high can serve as the trigger for a new phase of price. If Candle 2 forms with a small wick, price can expand back into the range. If Candle 2 forms with a large wick, price may return to its open, and Candle 3 expansion is likely to follow.
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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