Institutional Candlestics Types
There are broadly two types of institutional candlesticks:
- Candles with big wick – Rejection candlesticks
- Full body power candles – Shows strong decisions
Candles with big wick
- Wicks shows important price zones on the chart. Reason being significant wicks on important zones shows rejection of these prices.
- A strong engulfing candle at a trendline support along with a demand area marks a new higher low creation.
- As a result the market broke its last swing high after creating this higher low.
2 - If the market is sideways:
● In a sideways market. We should wait for a range breakout/breakdown and then make our decision on re-test.
- A strong wick rejection on an important psychological rejection level of 20,200 showed us the presence of institutions on these levels rejecting these price zones.
- As a result the market tried again to claim these levels with an up move but failed and saw significant selling from there.
Full body power candle
- Full body power candles show domination at particular levels in the markets. Only institutions have the capacity to move the market in a way that such full body power candles are formed.
- Strong full body power candle on an important support showed institutional interest at these price levels.
- As a result the market again tried to claim these levels but got rejected and saw a significant up-move from levels.
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