Rally Candle will signal when price is at the end of a Rally to the upside and thus entering a balance phase in the market (works on all markets)
This candle works very efficient when the market is either trending downwards or in range markets where price is at resistance. (i would avoid in uptrends but depends on the trader)
Also we can expect this candle to form when price is overextended as the theory of this script is when there is a turning point in momentum - this candle will appear and we can look long from this signal.
This candle will only work in Swing High areas and appear when below an moving average which can be changed in the settings.
This candle will work only work pn the HTF as it provides very good rexpectancy whereas the LTF has a slightly less expectancy (i will be publishing an intraday Rally candle)
This candle can be alerted to signal the Rally Candle when the bar is confirmed and not during.
The way i trade this candle is
1) Candle signal must be in probably area to increase efficiency. 2) Enter on the second candle after candle IS CONFIRMED 3) Set stop loss below Rally Candle or use ATR value 4) Trade with the trend ie only Bearish price action 5) This candle can catch extreme points in the market ie this candle projected when ETH hit aths $4841 6) Trading with a confluence along with the Rally is better than solely trading this candle