Propulsion Candle Gaps

What are Propulsion Candle Gaps?

Propulsion Candle Gaps are significant price movements created by large market participants such as banks and institutions. These gaps are characterized by large candles that move quickly in one direction, leaving a gap in the price chart. These gaps are not just random occurrences; they are strategic moves by big players to influence the market.

Core Features of Propulsion Candle Gaps

• Directional Signal: When a propulsion candle gap forms, it indicates the direction chosen by large market participants. This direction often continues for a period, making it a reliable signal for traders.
• Target Areas: These gaps act as targets. The price often retraces to these levels, as other big players might be caught offside in their positions. This retracement happens more than 90% of the time within a short period.

Why Propulsion Candle Gaps Matter

• High Probability Targets: Knowing where the price is likely to head with a high degree of certainty can be hugely beneficial. Traders can use these gaps to set realistic targets for their trades.
• Risk Management: If a propulsion candle gap target is within your risk:reward ratio, it can help you decide whether a trade is viable. If the target is too close or too far, it might be wise to reconsider the trade.

Examples of Propulsion Candle Gaps

Propulsion candle gaps are prominently featured in the "Support Resistance Propulsion Targets" indicator. This tool automatically draws these gaps on your chart, allowing you to see where the price is likely to head next or potentially reverse. The indicator also draws support and resistance levels, providing a comprehensive view of key market areas.

Additional Features of Propulsion Candle Gap Indicators

• Instrument & Timeframe Display: Shows the symbol and timeframe on the chart, useful for future analysis.
• Trade History Display: Automatically plots past trades on the chart, helping you analyze performance.
• Breakeven or Average Price Level: Displays the average price for long and short positions, useful for traders scaling in and out of positions.
• Candle Countdown Timer: Displays the time left before the current candle closes, useful for scalpers.

How to Use Propulsion Candle Gaps in Trading

• Identify the Gap: Look for large, fast-moving candles on your chart. These are usually created by significant market participants.
• Set Targets: Use the gap as a target area. The price is likely to retrace to this level, providing a high-probability target for your trade.
• Manage Risk: Ensure that the propulsion candle gap target fits within your risk:reward ratio. If it doesn't, reconsider the trade.

Conclusion

Propulsion Candle Gaps are a powerful tool in a trader's arsenal. They provide clear directional signals and high-probability targets, making them invaluable for both entry and exit strategies. By understanding and utilizing these gaps, traders can make more informed decisions and improve their overall trading performance. 🚀📈