How To Draw Bases That Have A Single Candle At The Base?
How To Draw Bases That Have A Single Candle At The Base?
When bases are made of a single candle, there are two options we can use to draw them:
1. Using the closest open/close of the basing candle
2. Using the upper/lower shadows (wicks) of the basing candle. Use this option when the candle is not very wide and it’s not a failed ERC candle.
Both options are valid. Price often reacts to the wicks, think of them like a magnetic field having a range of attraction or an aura.