EXAMPLE:
If price moves into a demand zone and forms a blue candle while staying above Daily POC, it suggests buyers are defending that area and may push the market higher.Remember, a blue candle is not a buy signal by itself. It should always be combined with market structure, demand zones, and proper risk management.
What It Means: The market is showing strength. Buyers are willing to absorb available supply, increasing the probability of bullish continuation.
Best Use: Look for blue candles near demand zones and above Daily POC for stronger trade confirmations.
Example: Suppose price rallies into a supply zone and immediately forms a black candle with high volume. This often indicates that sellers are defending the area and may push the market lower.Black candles help traders avoid buying into weakness and can also assist in identifying short-selling opportunities where appropriate.
What It Means: Sellers are becoming more aggressive and market sentiment may be shifting toward the downside.
Best Use: Look for black candles near supply zones and below Daily POC for stronger bearish setups.
Example:
A yellow candle forms inside a demand zone. Price consolidates. The next candle breaks above the yellow candle high. This creates a higher-probability bullish setup because buyers have confirmed control.
Why It Works: Markets often move from accumulation to expansion.Yellow candles frequently appear during the accumulation phase, helping traders prepare before the actual breakout occurs.