Can anyone tell me, how does a candle and a wick form?
How does a 15m candle form with respect 1m timeframe?
Why does reversal take place on a particular region, not even a pip above or below… Exact to the point?
In a 15m chart, when there’s a candle with long tail, let’s say a small box at the bottom and a long tail on top. It’s an indication that there is a strong resistance at that level.
If you see it in a 1m chart, multiple scenarios can happen. It may look like a steady uptrend, then one straight down sell out of nowhere. It can be the uptrend just stops at the highest point and no movement at all eventually leads to small sells over the course of 15 minutes. Or news could give a one-shot boost in price then goes back to where it was.
Anything can happen, best trade on a timeframe you can be available on.
Add or subtract the bodies from each other. That is take 15 candles from 1 min, add bullish bodies and bearish ones separately, now place them side by side, subtract the smaller one from the bigger one, the remaining is the body for your 15 min candle.
I know this might not make sense because I am a learner too, saw this from an Instagram reel of someone teaching the candles.
Reversals happen in that manner because the market is not some random ticker. There is an algorithm and pattern it has to follow, hence why you will see more volatility and or reversals around the same time each day for a pair.
The body of a candle represents the open and close price. For example, a candle OPENS at $10 and price moves up to $11, then down to $7, but CLOSES at $9. The top of the candle will be $10 and the bottom of the candle will be $9. The wick on the top (the HIGH) will show where price went on the upside in relation to the open, and the bottom wick (the LOW) will show where it went to the downside in relation to where the candle closed.
Hope this makes sense! Just watch a candle on the 1 min and you will see what I mean in real-time.
YouTube.