Forex: Understanding The Daily Candle

Candlesticks

A candlestick also known as a candle is a representation of price movement over time. At the end of that time the candle will either close lower than where it opened, higher than where it opened or close in the same place.

When it closes higher than where it opened, this is known as a bullish candle. When it closes lower than where it opens, this is a bearish candle. This blog post will focus on these 2 types of daily candles.

The Daily Candle

Different time frames create a different sequence of buy and sell candles. On the 1-minute time frame in the space of a day there will be 1,440 candlesticks of both buy and sell candles. This can be quite noisy and really distracting as the trend can change multiple times. On the daily time frame there will only be one candle. This means no noise and confusion. If you’re able to develop a strategy based of the daily candle, then you’re most likely to trade with no stress and win more trades.

The Daily Sell Candle Make-Up

Below is an image of a daily sell candle.

When a sell candle opens (1), most of the time there is a rise to the high of the day (2), then a drop to the low of the day (3) and then a close for the day (4). This will happen for 99% of sell candles. There will always be the odd one out where there is no drop before it rises but this is not as common.

The TTTM Strategy follows this exact sequence for sell days. Price is expected to run higher, tap into a poi (this is where the entry will come in) and then drop to a target where there is sellside liquidity.

Also, the beauty of this is that the trade doesn’t need to be held to the predicted low of the candle to catch a good percentage return trade.

The Daily Buy Candle Make-Up

Below is an image of a daily buy candle.

When a buy candle opens (1), most of the time there is a drop to the low of the day (2), then a rise to the high of the day (3) and then a close for the day (4). Very rarely will you see the daily bullish candle with no wick at the bottom, (no drop before the rise). Just like the daily sell candle this will also happen 99% of the time with the odd day it doesn’t however this is not common.

The TTTM Strategy follows this exact sequence for buy days. Price is expected to run lower first, tap into a poi (this is where the entry occurs) and then rise to a target where there is buyside liquidity.

The TTTM Strategy

Creating a bias based of the daily time frame is a lot more reliable then basing it off the 1-minute time frame. Therefore, I developed a trading programme based off the daily time frame that tackles all of the 4 points. The High Probability Point of Interest, The Liquidity Run, The Entry and The Target. The Trade Towards The Money Programme Is for beginners to advanced traders and will teach you how to catch high probability trades with a favourable risk to reward intraday. Many of my students after going through the programme have gone on to pass multiple funded challenges and received multiple payouts.

As a token of our appreciation for your interest, we're offering a limited-time 70% discount (discount code: TTTMFULLACCESS) on the Trade Towards the Money Programme. Plus, when you enrol now, you'll receive a Lifetime Mentorship bonus that includes coaching and support.

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Forex Beginner Course: The Forex Trading course i wish I had when i first started trading.
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Forex Mentoring: For guidance through the charts Monday to Friday through chart analysis, Q&A's and Team calls.

*Disclaimer: The information contained in this presentation is solely for educational purposes, and does not constitute investment advice. The risks of trading in securities, Forex, and the futures market can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. The instructor in this video is not responsible for any liabilities arising as a result of your Market involvement or individual trade activities.*