So go back to the daily. This is a point where you would have been able to see in failure. These rejection candles are showing you an extreme amount of shorts.
And for the same reason. So the reason we're going to be able to move through this quickly is because I believe you guys will understand this very fast. This is something where you are going to have caught.
a valley in the past, right? You're trying to break this distribution by catching this valley and breaking through it, right? Your trend is showing you the compression right there. I guess we should find the real trend here.
Something like that, there, accumulation to accumulation. So you're trying to break through this trend right now, right? You have already passed this cycle. You're still falling against this accumulation wick here. Excuse me.
This right here, or even we can delete that. This right here. Both of these are showing you rejection in a move. Even though this is back targeting a valley here on a daily, this is showing you rejection in a move.
When a candle is extremely wicked up like that, and has fallen, that means the amount of shorts that have come in through the market are, there's an offsetting that happens. If there's too many shorts, you're going to move down no matter what, because in this short right here, which is most likely back targeting this right here, the larger valley that brought it there on the weekly, you have people who are exiting all the way from here who are looking to... take this bounce and exit here, right? So you have everybody who is in this trade here who has lost money, everybody who is making money, right? Both of these scenarios are going to be shorting an inverse level.
This we know. So you do have an inverse level that's shorted, right? But when too much shorting happens, the move is going to break down, which is this candle here.
This is the exact situation where you see a move breaking down. This is due to an overdrift shorts from positions that are... too over leveraged. So if you guys are looking to not lose as much money in the market, here's what happens.
Okay. You have identified and let's pick the leg of this move, right? So people will have sold this leg of the move. Okay.
So there's a leg of the move right here and there's a leg of the move right there and this is the inverse level. So let's mark this problem. So there's the inverse level, right? You have people who have tried to catch this right here, this whole level, right?
Or this, whatever this is, ends up being wherever the valley in here is. So we'll just call it here for right now. You have people who are trying to catch this whole level, right?
So everybody who has looked at this whole level and say, oh, okay, oops, we are bottoming out. We want to break through trend, right? So this move is holding for wherever the valley is. Maybe it's right here. I don't know.
It's somewhere in here. anyways we're just going to mark it where the candles are because obviously that's where the whole level was people are trying to buy this through the trend break right the trend therefore ends up failing down so you have a large section of people who have bought this right here so this is over the course of a week you have a large section of people who have bought this right here right you have people who have now bought this level as well right here so you have people who have bought this level right here right You then have a back test of the inverse level, right? This right now is a rejection candle. You can tell by the amount of shorts that are in the market that this is going to be a rejection. It is not like this candle, which is, or this one, which is a retracement candle.
A retracement candle is going to be something where you move up and you hold the local level within the move. So this candle right here is not holding the local level. There would have been a local hold right here. on the top of this candle, there would have been a hold.
There would have been a pseudo hold inside of this valley that's created off of these two candles here. I know this because we're on the daily. So when you break this down, you'd see it.
There would be a secondary pseudo hold based on this valley here. Both of those have broken down and this has lost the ability to hold its move, which means that this has already back-tested all the legs that have been created. So within this hold, there would have been a leg on the way up here. And within this pseudo hold, right here, this value that's inside of these two days, there would have been another leg in the move somewhere around where that arrow is. So you have actually broken legs in the move before the failure has even happened, before you can even see the failure.
When you are testing out of this trend, you can see that this thing is already done and it's ready to move down. this is called a rejection of a move or a rejection candle or failed accumulation is one, another term I use for it. It's, it's failed accumulation.
It's another like that. That's the one I like. Cause rejection just kind of has like too many meanings. So I call this failed accumulation. This is when a candle is like, this move looks good.
Like, Oh, we back-tested the level. We're about to break out of the move, but innately on the daily, you can see that you've already lost the daily move. And then it just breaks down, right?
Like it just completely breaks down. So that is, and I don't think people are going to need a big explanation on that because you guys are getting really smart with this stuff and being able to catch this very quickly. The difference when you look at something like this, that actually has the viscosity to move up, you can see it's not this kind of situation where you have a rejection candle. And it doesn't matter what the candle looks like. The name of the candle means nothing.
I just call it failed accumulation. Don't start trying to pay too much attention to the shapes of candles and what they look like, because again, that defeats the purpose, but rather what it represents, right? Like this represents the backtesting and breaking of legs within the move, right? This represents the failure of being able to hold this valley right here and this first valley right here. So this first.
This second, this little pseudo valley in here, third, like it's failing to hold all these whole levels. So don't, don't look at this as, Oh, that's the cattle type that I recognize. Understand why it's happening because this is, this is breaking all these lakes inside of this movement. And before it broke those lakes, it had to backtest the whole level.
And if it backtests that whole level and failed, it means it broke the next lake, which means it backtested the next level. And when it can't hold that whole level, it's automatically backtesting another lake, which is breaking down to the next whole level. So you're skipping over it.
break levels to back target hold levels and nothing is holding. So this candle is showing you that nothing is holding in the move. So you are pre-setting failure without even knowing it, right?
You can just sometimes see these candles and you'll see them on four hour timeframes. You'll see them on one hour timeframes and you'll be like, oh shoot, I just saw this one hour candle that went up and straight down. Darn, that means all the 15 minute legs are broken. That means this is probably now starting a downtrend on that timeframe.
So if we're starting a daily downtrend, that's going to be a large move. If you're starting a 15-minute downtrend off an hourly failed accumulation candle, then with respect to where's the four-hour hold. So if you have a rejection candle on the hourly, how is it affecting the 15 and what can hold it up above it? So one-hour failed accumulation or call it rejection candle for ease of verbatim here. A one-hour...
rejection candle happens, how can the four hour hold it? How can the four hour move support it? And where's the four hour trend?
Where's the four hour hold level? Did that one hour level just backtest that one hour rejection just automatically break through one of the four hour legs, right? So these candles can show you points of automatic failure. And again, not because of the type of candle it is, get away from that kind of thinking for anybody who wants to ask that question.
How do I see or mark the candles? Understand the concept of why, what's happening in the move, right? As a as opposed to something like this, which is a retracement candle, where you do have a candle that's moving up. And within that it is respecting the moves. So so less important is this candle, this is just the anti to this candle here, right?
More importantly, is seeing the failure before it happens, which is your rejection candles, right? Or your failed accumulation candles. These are just succession.
That's all this is a succession. We don't we don't need to pay special attention to this other than other than we know that we bought the whole level. It's moving up. We have succession in the move.
It's going as we have seen it to go. And then if you move forward in this move, there's another one, right? You can see another huge rejection candle. And here is where you don't see rejection candles.
You see a little local rejection right here, which is a lot smaller. It's not like this, that's backtesting and breaking all these candles in here. This is simply just trying to get out.
So this is showing me it's testing a valley in here somewhere in this candle, which is what it is. And then it's showing you retracement candles, which is accumulation. We're just going to move forward here to when this thing starts to move up. So there's a point where you don't have a rejection candle.
If this candle right here was this right here. You don't even need to really dissect into the charts. You can just automatically see that, okay, we've actually back-tested every single leg. We already know that we have a hold level here, right?
We have a hold level here. We have a hold level here. We have a pseudo hold level here and then probably a small fractal one right here. So it's like, okay, which hold level are you holding and which legs are being back-tested? Somewhere inside of this, there's a hold level that was possibly created in a fractal time frame inside of this candle.
So maybe there is like a four hour hold inside of here that actually gets held right there and it bounces off that. And now we're probably most likely going to come back down and target this one. We actually don't.
It just moves straight up against trend. So it actually just moves straight up against its trend here. So there's a pretty valuable set of information to know when you see something like this. And if you're in a move and you see something like this, where you can see the failure before it happens, like this is not something that should be ignored.
Like this is showing you failure before it's about to happen. Hey, everyone. How's it going?
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