Single Candle Zones are a form of Zones and price can commonly find Resistance or Support on them. For those who are new to ; “Support” is a area on the chart price and demand (buying pressure) increases from, with “Resistance” being the opposite, with price decreasing and sell orders (Supply of asset) increasing from the latter.
To draw and identify the Zones first we must find areas on the chart where a strong reversal occurs, at the start of the trend reversal, or at swing points we can find larger then normal “wicks”: (wicks are the thin, needle points at the end of the ) as you can see in the top left of the image.
When price revisits them (as you can see on the bottom image) it tends to react to it; giving traders a opportunity to capitalize on these movement’s. They also are a useful tool for gouging Risk & Price targets as when one Zone is “claimed” price tends to head towards the next like a magnet; so they become ideal take profit & SL (Stop Loss) areas.
In this particular image we can see how ETH:BTC clearly had important price reactions to these areas; with the uptrend starting from the original Single Candle Demand marked at the Bottom Left. As the Price Action progressed – the level was “claimed” until we saw a continuation upwards, price then started to decrease in value at the next area. We came back down to the Single Candle Demand Area and now we have seemed to have found Support on it. We can use this live chart to look back in the future and see how Ethereum:BTC reacts to these historically important areas of while learning.
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