Mechanical Candle Profiling for Trading

May 7, 2025

4-Hour Candle Profiling

Overview

  • A mechanical way to read price action using swing points.
  • Not based on CRT or other conventional methodologies.
  • Inspired by MXM Trader Next Time Model and TTR Teaching.

Concept

  • Profiling a single weekly candle:
    • Monday/Tuesday reversal, midweek reversal, consolidation, Thursday counter profile.
  • Same logic applied to 4-hour candles.
  • Focus on swing points and the expected expansion of following candles.

Key Trading Sessions

Indices

  • 2 AM - 6 AM: London Session.
  • 6 AM - 10 AM & 10 AM - 2 PM: New York Session.
  • Close trades before 12 PM (New York lunch).

Forex

  • 1 AM - 5 AM: London Session.
  • 5 AM - 9 AM & 9 AM - 1 PM: New York Session.

Candle Profiling Patterns

Asia Reversal

  • If Asia candle reverses, expect London to expand and New York to continue.

Indices Forecast

  • Reversal likely within:
    • 18-22 candle or 22-2 AM (2nd daily range candle).

Forex Forecast

  • Reversal likely within:
    • 17-21 candle or 21-1 AM (2nd daily range candle).

London Reversal Pattern

  • Similar to classic buy/sell day.
  • Expect London to reverse and New York to expand.

Schematics

  • 18 candle opposing run, 22 candle reversal
    • Asia session schematics.
  • London Reversal:
    • 18 & 22 candle consolidation, 2 AM reversal, creating second swing point candle.

New York Session Profiling

  • When London and Asia fail to reverse, New York candles manage reversals.

Indices Focus

  • 6 AM - 10 AM Candle:
    • Acts as reversal into expansion candle.
    • Covers major New York session news events.

Forex Focus

  • 5 AM - 9 AM Candle:
    • Failing to reverse leads to reversal in the 9 AM 4-hour candle.

Entry Ideas

  • Follows classic "change in state of delivery" and "A Block" methods.
  • Use different entry strategies for reversal and expansion candles.

Framework Alignment

  • Align pre-existing daily buy models, price delivery, and candle swing points.

Examples

  • Detailed examples provided for Asia, London, New York reversals, and candle expansion.
  • Analyze swing points, price delivery phases, and confirmation through smaller time frames.

Conclusion

  • Utilize schematics and profiling patterns for effective trading strategies.
  • Emphasis on understanding candle dynamics and alignment with broader market trends.
  • Encouragement to subscribe and like for more educational content.