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How to Determine Whether the Next Candle Will Expand or Consolidate
Predicting Directional Candles
→ Formation I: Reversal Candle
→ Formation II: Immediate Rejection Candle
→ Formation III: Engulfing Candle
After any of these three formations appear, the following candles have a high probability of becoming directional candles rather than consolidating.
These formation candles act as your Anchor Candles for defining the Wick Formation Area.