How does blending work?
We begin by determining how many candles we want to blend, then taking the opening price of the first candle, the highest and lowest prices obtained over all candles, and lastly the closing price of the last candle.
After a time of downtrend with a reasonably large first candle body, we have a period of uptrend with a larger body that completely consumes the preceding period’s body.
Blended candlesticks work great for all sorts of CFD trading as well as forex and commodities and cryptocurrency trading
Watching individual candles burn out over short time periods can cause stress, which can lead to early stops out/exits of positions, which can lead to losses or less profit taking than originally anticipated.
We can decipher what price action is attempting to tell us by looking at the open, close, and high/low of the pattern on the first and second candles.
Please comment & subscribe @InvestorsTradingAcademy
Comments (0)