GxT Mentorship | Candle Profiling | Ep3

What's up, guys? Today, we're going to

be going over candle profiling, right?

This is a universal concept. You can

apply it on multiple time frames. This

is not new to anyone seeing this

necessarily, but it's going to go a

little bit more in depth, and we're

going going to go into even more in

depth very soon. So, let's go ahead and

get into it. So with an expansion

candle, right, the profile is really is

just how the candle's forming, right? So

the way a candle forms is going to tell

you a lot how it's likely to close. And

if you can hear background noise, I

apologize. Cannot do anything about it,

to be honest. Um, but the way a candle,

like I said, forms is going to tell you

how it's going to close, right? So

there's two things we look at with

candle profilings. It's the way it

forms, like I said, the profile and then

the wick size. So the wick size is kind

of something we're going to go over in

next slide. So with an expansion candle,

you ideally want to open low first, form

that low earlier on the candle. So

there's a lot of time to expand, right?

The less time there is, you know, in the

protraction phase. So to form the wick,

the more time it has to expand and the

larger range we can get. And we want

that low to form from a key level.

Another way a expansion candle can form

is just rips. you've seen Asia low of

day um or Monday low of the week, it can

also just expand, right? That's also

fine. Um we just want that to have that

small wick really, right? But if you're

going to trade that protraction phase,

so the wick, you want it to open low

first, basically, right? So in a bullish

example, it'll open low first, close to

the highs. In a bearish example, it'll

open high first, close to the lows. Now,

let's get into signature.

So expansion candle signature is simply

the small opposing run, right? This is

your filter for price action. When you

see that small opposing run, this tells

you that you are aligned with expansion.

And um yeah, that's the signature for

expansion. Nothing really to go over

with that. So, how do you know it's an

expansion candle? Well, one thing we can

do is we can mark out EQ of the previous

candle's range. And how do we anticipate

expansion? It's continuation away from a

swing formation, right? So basically

continuation away from reversal or just

continuation from the previous days

range towards an objective right

objective target being a higher low or a

fair value gap always on all time

frames. Um

yeah it's pretty much it right we're

going to respect the 0.5 of that candles

previous candles range and because if if

it goes down here right then that

wouldn't really a support expansion that

that wick size would be very large. So

that's kind of like a filter in price, a

mechanical way we can measure wick size.

So now with targets with this being an

expansion candle, this is when we can

anticipate price actually expanding

through the opening price and towards

higher time from firm objectives. Really

sorry if you hear this noise like Jesus.

Here you see this candle is opening low

first respecting EQ of the previous

candle's range, right? forming its low

earlier in the candle expanding right

through close proximity draws. So your

first objective, your first target will

always be the previous candle's high,

right? So in this case, you can pretend

that's like the daily chart. You have

the previous day's high. That's that can

be your first target. And then your next

target since it has that small wick,

right? That allows it to expand. So your

targets can be a lot further because of

the candle profile that you are within,

right? So this can be like the higher

type from draw liquidity can be your

TP2.

So now a reversal into expansion candle

is an expansion candle, right? But it's

a reversal

and an expansion. So it's a two function

candle, right? It reverses but also

expands. The wick size allows it to do

so, right? So the way expansion kind of

forms is the same way you want a a um

bullish expansion candle to form, right?

You don't want to open low into the

previous days low, right? Expand away

from it. um that small wick allows it to

expand, right? So, it's the same thing

as the bullish expansion candle. So, no

reason to harp any longer on that,

right? So, the signature for a reversal

to expansion candle is a reversal off

that previous candle's low. Right? You

don't want to see price really dig, you

know, much past that previous candle's

high or low. In this case, a bullish

example. You don't want really want to

trade beyond this low. Otherwise, that

would be that reversal candle, right?

You want that small opposing run, right?

just wicking that previous candle's low.

So, how do you anticipate a C2 reversal

candle? Right? There's multiple ways.

One way is either if candle one hits a

key level but doesn't reverse. See how

it hit a key level but doesn't reverse.

Then we would assume a reversal off that

previous candle's low. Right? So

basically previous day trades into an

objective. So expansion to objective,

next day reversal into expansion. Right?

And another way we can anticipate it if

if candle two hits a key level. But

that's just if candle one closes very

close to a key level, right? Because it

has to close near the key level. If it

closes really far away, then obviously

if candle 2 hits that key level and it's

really far away, then it would have a

large opposing run. That wouldn't be a

reversal to expansion candle, right?

Another way and you know another trigger

for a new phase of price or to

anticipate a reversal expansion candle

is after you know three expansion

candles in a row. It can even be one

expansion candle, right? It can even be

one large range, right? Where maybe we

expand maybe like alltime highs or

something, right? We're just like above

a high. Maybe we're not hitting a key

level. We have a very large expansion in

one direction, right? then you can

expect that that next you know day to

reverse off of that previous candle's

high or low and trade back into that

current candle's range in this case into

back into the range that was created

from 3 days of expansion right so this

is like AM trades expansion rule

for targets it's the same thing as a um

reversal or sorry an expansion candle

it's a little bit different because

we're obviously going to target TP1 is

always going to be the current high of

the candle slash low of the candle. So,

if this is the daily chart, the the

current high of day or low of day or

just the closest low hanging fruit

objective, right? The closest relevant

high or low to the opening price pretty

much, right? And then beyond that, you

have the previous candle's high as your

next draw liquidity, right? So this in

this case is a lot nicer target than an

expansion candle because because an

expansion candle a lot of times just

opens near it. Sometimes it gets hit

really early in the candle. You don't

have a chance to trade it. But in this

case a lot of times you have a you do

have the chance to trade towards this

high, right? Because it opens so far

away. Um and then you can also target

beyond this previous candle's high

because it has that expansion candle

right. has that small wick where we can

actually anticipate price trading beyond

this high potentially into our higher

time from draw liquidity.

So now a reversal kind of profile. This

can form a couple ways, but the way we,

you know, want it to form, if we're

going to engage with the reversal

candle, specifically on the daily,

really, especially on the daily, is we

want it to open low first, right?

Because if this candle opens high first