A short trading commentary explaining why price often reverses after the market open. The speaker describes candlestick patterns at the open (high-volume bottom wicks followed by adjacent candles), the concept of a liquidity "shelf/edge," and how exhaustion of buy-side aggressors—while liquidity is located lower—causes a down candle that moves price back into the prior range.
So the market opens today. We have some candlesticks that are forming. We get a very high volume bottom wick. Then we get another candle next to it. What will happen is when we get to this shelf, we have a trade idea. When we get to this edge, there's nobody here above us. And so if you think about what moves the market, there are buy side aggressors and sell side aggressors. So what happens here is that you run out of buy side. So where is everybody? They're all down here. And so what happens is you get this down candle back into this range.
