One of the simplest but most effective ways to read market strength is through imbalance candles - large-bodied candles that break and close above or below key swing levels.
➡️ When price closes above major highs with a strong imbalance candle, it signals aggressive buyers stepping in.
➡️ As long as price holds above the break, the move is considered strong.
➡️ If price moves back inside the candle, it shows weakness and a possible trap.
➡️ Stops can be trailed just below the imbalance zone if you’re in a position.
This method helps filter noise: instead of chasing every breakout, focus on whether price respects the imbalance zone. Strong trends hold above - weak ones give it back.
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📊 Price Action: Imbalance candles
One of the simplest but most effective ways to read market strength is through imbalance candles - large-bodied candles that break and close above or below key swing levels.
➡️ When price closes above major highs with a strong imbalance candle, it signals aggressive buyers stepping in.
➡️ As long as price holds above the break, the move is considered strong.
➡️ If price moves back inside the candle, it shows weakness and a possible trap.
➡️ Stops can be trailed just below the imbalance zone if you’re in a position.
This method helps filter noise: instead of chasing every breakout, focus on whether price respects the imbalance zone. Strong trends hold above - weak ones give it back.