Trading Candles with No Wicks

Introduction

Discussion about market candles that open and close without top or bottom wicks.
Aim to help traders understand and master trading in these scenarios.

Confusion arises when candles have no wicks.
The video aims to clarify how to trade and what these candle formations indicate.

Candle Opens with No Top Wick
- Expected price movement: bullish.
- Example: If the candle opens with no top wick and begins to flip down, it may create a bottom wick.
- Trade Strategy: favorable for entries as it allows better positioning without concern for a bottom wick.
Candle Opens with No Bottom Wick
- Expected price movement: bearish.
- Common Confusion: Should you enter at the break of the high?
- Timeframe Relevance:
  - On the 4-hour timeframe, candles usually have both wicks (80-90% of candles).
  - Lack of bottom wicks can spark concern.
- Example: If trading on lower timeframes but a higher timeframe shows no bottom wick, it can become problematic.

Higher vs Lower Timeframes:
- On a higher timeframe (e.g., 4-hour), the absence of a bottom wick can signal trouble when trading.
- On a lower timeframe (e.g., 15-minute), it may not require as much caution if there's a quick burst of volume.
- Trading Strategy:
  - If trading at London open, take trades even with a 15-minute candle without a bottom wick, trusting momentum.

50/50 Chance:
- When a candle closes without a top or bottom wick, the likelihood of continued movement is about 50% for both directions.
- This creates uncertainty and indicates mixed results.
- Volume Impact:
  - When there's high volume, it can lead to a better understanding of price direction.
  - Anticipate price action and look for the next candle to confirm direction.

Summary of key points discussed.
Importance of recognizing market context and candle formations for better trading decisions.
Encouragement to engage with the community and join live trading sessions.
Closing remarks and expression of gratitude for viewer engagement.