Recently in a Level 2 classroom session we were examining the charts and we discussed to very important candle types. They look very similar but because they are located in different situations they have different properties. This is something we always discuss in our class is the fact that we can have similar candles but depending on the context in which that candle is found, they have to be observed in different ways. On this chart we have a red candles and on the right we have another red candle. Their bodies are very similar but the wicks on both of them are different.
We went into some detail in the January 18th session so those of you in level 2 should review that session and learn the lesson from what we observed. If you are in level one we will be discussing this topic in much more detail in future sessions. Briefly the concept is that there two candles are considered basing by the banks but in one case we would consider the basing to play a very important role in dividing one area of basing from another. We see this many times on the charts and it’s important to know the role that it plays as it will change your analysis drastically when observed correctly.
Tomorrow we have our level one class where we will look at the #USDCAD chart and discuss what we find and the reasons why the candles are doing what they are. We’ll also bring up this topic within class so look forward to seeing you all there.