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Ohlc Olhc Types

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578 views11 pages

Ohlc Olhc Types

Uploaded by

nopemam924
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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OHLC/OLHC TYPES: HOW CANDLES FORM works best: london session

Common types:

This is how a classic


expansion looks like

it is not always like BULLISH CANDLE BEARISH CANDLE


that
the 4 types
Type 1 double fake

Type 2 Midnight fall

Type 3 Trend candle

Type 4 Sleep session


Type 1 details
Double manipulation in both ways after 00:00 NY time (UTC-4) Open
First manipulation is the fake one, it leaves clear liquidity levels unswept on the other side.
(usually it runs max. 10 pips)
Second manipulation will give the real expansion (it runs at max. 15 pips)
Price ranges around the open until the first manipulation happens
reversal o continuation di asian range
2nd m
1st m

1st m
2nd m
Type 1 example 5m chart
Type 2 details
Already or shortly after (<1h) midnight open price starts manipulating in one straight direction leaving imbalances
Price continues its move until it sweeps liquidity and finds an imbalance or support
Happens mostly when asian session is a range, if looking at 2 pairs correlated one may not sweep the manipulated side of
the asian session (SMT) . It also can present during Asian continuation but less frequently
Classic manipulation profile, first reversal between 2-3 NY, Optimal trade entry is expected
manipulation is not more than 20 pips, if runs more it is not type 2
Type 2 example 5m chart
Type 3 details
No manipulation or 4-5 pips max. price starts trending since the open and never stops until the session is near the end
At key times (2/3/4 NY) short retracements are provided for entries, if the open level is near it can go use it as support
happens when asian session started a reversal after a manipulation, this means london is an expansion phase
Expect it when daily TF is expanding
Type 3 example 5m chart
Type 4 details
variation of type 2 Price consolidates after 00:00 NY time for more than 1h around the open
Max Manipulation conceded is around 15-20 pips
Consolidation around the true open
Manipulation is common at 2-3 NY (classic londom manipulation)
Happens more when asia ranges than as trend continuation
Type 4 example 5m chart
Final details
Spotting the correct type of open works for taking intra session or daily trades if the context is paired with the daily bias

Spotting what the asian session did is key to eliminate some types of possible openings
(es. Type 3 rarely can happen if asian is a range/if asian has just reversed before london open instead it is a high probability scenario)

Each type has its own way of being traded, if you know what is happening you know how to enter

The 00:00 open is the most important level of the session above is premium below is discount, once the manipulation is
over price runs away from that level. Long below the open and short above it to have higher RR

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