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There are two axial considerations of a candle:
1. Time
2. Price
There are two phases of every candle:
1. Protraction Phase (Deviation above/below the open--creating the wick of a candle)
2. Expansion Phase (Creation of the candle body)
Here is the relationship between these two axis:
The depth of manipulation is proportional to the expected expansion of the candle.
The smaller the protraction phase (wick), the more time & range the candle has to expand.
The larger the protraction phase (wick), the less time & range the candle has to expand.
Generally speaking, this is why we prefer to trade small wick candles, as they support large bodies ~ Expansion.
When we see large opposing runs in candles that reverse, we define this as a delayed protraction profile.
Price utilizes the majority of its range & time in the manipulation phase.
To trade a delayed protraction you must have three conditions met:
1. The reversal candle with a large wick must trade into a significant key level that supports a HTF reversal
2. A Two-Stage Crack in Correlation must be present at the reversal, which is universally true of all HTF reversal
3. You position yourself within an expansion candle, one with a small wick.
This is one way I use Quarterly Theory
A Compelling Example: Q4 Reversal followed 10AM DP
Step-Wise Logic:
i. 10:00 Opens with a large opposing run into a KL
ii. We confirm the true reversal with 2 stage CiC
iii. We align an expansion candle - 12:00 PM (H6/M90)
I will be teaching you far more about protraction profiles in depth in my next YouTube video!