Candle Part ii by NickB (forex4noobs)

Now I am going to throw in a dumb pic to illustrate what an indecision candle is:

This is why an indecision candle is an indecision candle. The sliders have numbers from 0 to 10. When the bulls are at 10 it means they have a lot of power when they are at 0 it means they have no power, the same goes for the bears. So what happens when they are closely matched in terms of power? Thats right, an indecision candle forms. So when the bulls and bears have equal amounts of power you will get indecision, as soon as one side gains power the candle will show who show who has gained power.

In the picture below we see that the bears have a lot of power and the bulls have very little so now we have a large bearish candle.













This should really drive home what the candles you know as reversal candles really mean. They do not indicate a reversal they simply indicate that the bears and bull have equal power and that direction is undecided.


Shades of Grey

So stop thinking of candles as boxes that just show us highs, lows, opens, and closes. Candle tells us the story of the pair, they tell us when there are more buyers, when there are more sellers, and when the buyers and sellers are equally matched. These are the shades of grey I was talking about earlier.

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