A trader explains why the daily candlestick matters most. Price rejection at daily highs or lows signals entries, confirmed by the previous day's auction range and current price action.
If we look at a daily candles, first of all, okay, you've got the low of the day, you've got the high of the day and then this here is the main body where you've got the opening and closing prices. So say this is an up candle and it's up for the day. You've got the open here and then you've got the close here. I look at a daily candle as being my most important information. The data in the daily candle is what I really need to know. Now if the open here and the closes here and let's say we're drawing a line graph, it's going to do something like this to get to that point. That's what that line graph is going to do to give us this information for the candlestick. It's this information in here is where my trades are going to be placed based. But I use the information of yesterday's auction and the current price action to make those decisions. As I get this information every day, if something rejects a high or rejects a low, that's going to be really, really important for me. That's the bare bones in the start of the strategy. The actual strategy is even simpler than that.
