Gold Spot / U.S. DollarEducation
Marking MC, and Signal Bar
To mark the Master Candle (MC), wait for the price to cross and close 7EMA. Then look to the left of the candle that crossed and closed it. In most cases, the MC is directly in front of this candle.
As it's shown in the chart, Candle X has crossed and closed 7EMA. So, candle Y is the MC.
Bullish Signal Bar: a green Pinbar which has no or is smaller than the body's upper shadow.
Bearish Signal Bar: a red Pinbar which has no or is smaller than the body's lower shadow.
Note 1: Signal Bar can be spotted via Candlestick Math too. This means we consider the opening price of the first and the closing price of the last candle. If these candles add to a valid Signal Bar, we consider it as a signal to go in trade.
Note 2: the only situations that Signal Bar is valid:
For trading in the opposite direction of the trend, we should be in a ranging market (inside the MC range), and the price should have toughed MC levels and BB (Bollinger Bands).
For trading in the direction of the trend, the price should have at least touched an MC level and one of the EMAs.
As we see, summation of candles X & Y was not a bearish Pinbar. So, we don't have a valid signal to go short after candle Y. In these situations we expect the price to go higher.
As it's shown in the chart, Candle X has crossed and closed 7EMA. So, candle Y is the MC.
Bullish Signal Bar: a green Pinbar which has no or is smaller than the body's upper shadow.
Bearish Signal Bar: a red Pinbar which has no or is smaller than the body's lower shadow.
Note 1: Signal Bar can be spotted via Candlestick Math too. This means we consider the opening price of the first and the closing price of the last candle. If these candles add to a valid Signal Bar, we consider it as a signal to go in trade.
Note 2: the only situations that Signal Bar is valid:
For trading in the opposite direction of the trend, we should be in a ranging market (inside the MC range), and the price should have toughed MC levels and BB (Bollinger Bands).
For trading in the direction of the trend, the price should have at least touched an MC level and one of the EMAs.
As we see, summation of candles X & Y was not a bearish Pinbar. So, we don't have a valid signal to go short after candle Y. In these situations we expect the price to go higher.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.