Filter Price Through "Candle Profiles" | GxT

What's up, guys? Welcome back. Today, I

have another video for you guys, and

we're going to be going over candle

profiling. Now, this is something that's

really simple, right, but extremely

important. And this acts as a filter for

price action, right? So, a lot of you

guys have been asking me, how do you

avoid um low probable days? This is just

one of the filters. Um this is really

the first thing I look at when I come to

the charts is the candle profile. Now

what we must understand is that candle

profiles

um really is like two has two key

components and they both need to be

aligned. So the first component is wick

size. So wick size tells us how far the

candle is likely to expand because if

you go back into the market and look at

any

any candle expansion candle you're going

to see they all have the same thing in

common and that is a small wick a small

opposing run from the opening price

right this allows the candle to have

that large body right small wick large

body less time in the manipulation phase

of the candle or the protraction phase

forming the wick more time for it to

expand. Right? So, this is the first

filter in price. We're looking at wick

size, right? This tells us how far it is

going to expand, right? What if we have

a large opposing run from the open?

Well, this is something we typically

want to avoid because it's not going to

reverse and expand in the same candle.

It's just going to reverse, right? It's

not going to expand past this opening

price that we see here, right? Because

the wick size doesn't allow it. So large

wick, small body. Typically this is

where we, you know, have the reversal in

the form of a candle two closure and we

look to trade a candle three expansion

rate. So we would look for this to be a

candle three and this would be like

candle two for example. Right now I do

trade this and I will show you guys how

to trade it. But it is specifically on

the higher time frame. Right? So this

will be a kind of like a daily profile

you could say. Um, daily profiles and

candle profiles are like two different

things in my opinion though. Daily

profiles not so much not too important

to me. This is what's actually important

uh in my opinion because for example I

can't have a London reversal if it looks

like this. For example, if I want a

London reversal, I wanted to have a

small wick, right? So I can expect a New

York continuation because that's what a

London reversal is. It's a London

reversal New York continuation. You

can't really expect a New York

continuation if uh the wick size looks

like this for example. So all daily

profile tells you is when the low of

days formed like what time. If it's a

Asia you know high of day then you can

expect the previous sessions or the next

sessions to expand. If it's a if none of

the previous sessions reversed then it

has to be a New York reversal. That's

all that tells you. Nothing spectacular.

This tells you like I said how far the

candle will expand but also how it will

close. And this is where this comes in

like how do we know how the candle is

going to form or close. This is where um

this comes in which is this is the

actual candle profile itself or the

protraction phase like how is that

candle forming. This is what's actually

really important. So typically for a

bullish expansion candle we want it to

open low first. All right. When it opens

up first, this is um what allows it to

use as a little time in the expansion

phase, right? Um to form the wick to

expand, right? Or sorry, little time in

the manipulation phase. So, it can have

as much time to expand, right? It's like

a fluid motion. Open, low, high, close.

We all we've all heard this a million

times, right? But we really want the

these candles to form this way. In the

best expansion days, it forms exactly

like this. And there's a reason why we

want it to open low as well. And this is

something we're going to go over in

another video. So, I don't know if I

already mentioned this,

but this is this video itself is just

going to be over the candle profile

concept alone. Uh, and then it's going

to be a video series. I'm probably going

to do going to cover multiple concepts

and then we're going to put it all

together, right? Because we don't just

use candle profiles alone. Um although

it's a very good filter for price when

we apply it to other concepts and

intertwine them and stuff like that but

it gets very good right um but anyways

this is a pos positive condition is when

it opens low firsts right applied on all

time frames by the way but I'm really

specifically talking about the daily

candle or high frame candle now a

negative condition is when the candle if

you're going to be bullish if it opens

high first we don't want to see this we

don't want to see this right especially

if it opens high into something relevant

and like manipulates it. That's a really

negative condition, right? This is where

it will typically, you know, maybe this

is the low of a reversal, right? But

it's not going to expand. It's not going

to give that expansion because of the

way it forms, right? It opens high

first. Using a lot of the time to

manipulate or sorry, um yeah, basically

to manipulate, right? Because it opened

high and then has to open low. Look how

much time that is, right? It's like half

of the candle in the manipulation phase.

Doesn't have enough time. It simply does

not have enough time. um in range to

expand in the same candle. Right? So

this is a negative condition. We do not

want to see this even if it has a small

wick. Right? See the small wick? It's

not going to expand because of the

candle profile, the way it is forming.

Right? This is arguably more important

than the wick size. It actually isn't

more important. It's the way the candle

forms in my opinion. Now we're going

going to be talking about what I don't

consider as an open high or an open low.

And this is when we just consolidates,

right? If we just consolidate, it's it's

not an open high or an open low. What I

deem as the first open high or open low

is the first side that gets manipulated.

So if we manipulate the low first, I'm

viewing this as an open low. Right? If

we manipulate the high first, I'm

viewing it as an open high. Right? So a

lot of people will think that just

because the candle opened high first,

this is automatically bearish day. No,

no, no. If it it can do this, it can

range. It can even open high first and

then open low and then expand. As long

as this little open high or whatever

doesn't trade into anything relevant, it

doesn't matter, right? That's fine. As

long as, you know, if it opens high

first a little bit and then we open low.

As long as this open high was formed

super early on the candle, it generally

doesn't matter, right? Um, so I just

wanted to throw this in there because I

know some people get confused with that.

Um, the candle is not just going to open

low directly. Like sometimes it does

that and that's great, but sometimes

it's going to open high a little bit.

That's fine.

Right now, we're going to be talking

about a candle um to reversal into

expansion candle. So, what we just

talked about was just an expansion

candle. Like these previous candles are

just expansion candles. This is a

reversal candle, but it's a very uh it's

very distinctive where it has a small

wick which allows it to also expand,

right? So, just like an expansion

candle, we want to open low first. uh

and if it has this small wick then it

can reverse but also expand. Okay, so

it's still an expansion candle um at the

same time. It's also a reversal candle.

It's like the same. It's like two in