I stared at charts for years, using so many ICT concepts.
Eventually, a switch flicked and I realised all I needed was 𝟭 𝗖𝗮𝗻𝗱𝗹𝗲.
Here is why I now only trade 1 Candle,
Welcome to ‘1 Candle Theory’.
🧵.
We must first establish which candles I am looking at.
- Expansion Candles.
An expansion candle, I define as:
‘A candle which is prone to expand if the context around that candle allows for it’.
They often look like the image below, but how do we identify these?
To identify an expansion candle we must frame context.
Have we traded into a discount array, with the DOL above us?
If yes, are we under the right ‘time based’ conditions to expand? i.e. a killzone.
Look at this example:
We have ticked multiple boxes:
- Buyside Liquidity taken ✅
- FVG with resting liquidity below it traded into ✅
- Rejection from that level ✅
- At a time we are due to expand (Wednesday) ✅
Therefore, we can now anticipate the next few candles to be expansion candles. All because we framed the right context.
Creating a trading plan, suited to your personality, to make money.
A thread 🧵.
First of all, your plan and approach to the market must be suited to your personality. I look at it in the sense of your net negative traits need to be accounted for within your plan.
Anything that could negatively affect your trading needs to be considered.
What do I mean by this?
For example,
- You’re an impatient person = Walk away from your screen and set alerts.
- You’re pulling trades early = Lower your risk.
The parts of your personality which negatively impact your trading need to be approached like this.