01Read the whole candle
Every daily candle tells you four prices. Learn to see all of them.
Practice version. These rules are a practice version for testing, not a verified profitable system. All outcomes shown are hypothetical.
Risk notice. Forex trading carries a high risk of loss. Most retail traders lose money. Leverage can make losses larger than your deposit in some markets. Stop orders can fill beyond their requested price. This site is education, not financial advice. Practise on a demo account first and check any broker's registration with your local regulator.
A daily candle has an open, a high, a low and a close. The body runs from open to close; the wicks show the extremes the price reached during the day.
- 1The body runs from open to close.
- 2Wicks show the extremes: the high and the low.
- 3For an inside bar, compare the full high-to-low range, not the body.
For an inside bar, compare the full high-to-low ranges, wicks included. Colour does not decide breakout direction.
Four terms you will use
- : the candle immediately before the candidate.
- : a candle whose whole range sits strictly inside the mother bar.
- : price moving beyond a planned level.
- : the daily timeframe.
Pause and point: point to the high and low of any candle before placing a pending order.