Candle’s Body Shunting is valid for Momentum or Strength Candles in Nimblr TA’s Price Flow Analysis.
Strength Candle can be Bullish or Bearish Strength Candle
Whenever Close of a Star marked or Strength Candle closes above the Open with a Body Height greater than 50% of Candle Height i.e. BH>50%CH it is a Bullish Strength Candle.
Bearish Strength Candles: (BeSC) Whenever Close of a Star marked or Strength Candle closes below the Open with a Body Height greater than 50% of Candle Height i.e. BH>50%CH it is a Bearish Strength Candle.
Two Types of Candle’s Body Shunting are observed in case of:
*Rising Strength Candles
*Falling Strength Candles
Whenever the Open of a rising strength candle is lower than or Equal to the close of a previous highest closing rising Strength Candle in the rise, it is a case of Candle’s Body Shunting.
Whenever the Open of a falling price strength candle is higher than or Equal to the close of a previous lowest closing falling Strength Candle in the fall, it is a case of Candle’s Body Shunting.
In ascertaining overlaps use cross-wire scroll all the time on charts as shown by the horizontal line.
In Body Shunting the shunting of Close is always of previous candle and Open of the next or new or current candle.
Bodies are placed like locomotive wagons one ahead of the other.
Between two Body Shunted Strength Candles they may have one or multiple ‘in-between’ candles.
The ‘in-between’ candles can be strength or non-strength candles.
In Body Shunting always the Close is connected to Open and hence symbol for Body Shunting is ‘C=O’
Overlap of Bodies is permissible only to the extent of shunting.
Adjacent Candles are Overlapping and hence not consider as a case of Candle Shunting.
One of the two, the Open or the Close of next candle must be out of the common value range. In the below case they are in the common body range and therefore it is not a case of Body Shunting.
In other case the Open or Close of next candle is completely out of the range of previous candle and avoids Body Shunting all together, to give a Body Gap between two strength candles.
The Body Gaps are Indecision Zones.
Body Shunting provides a ‘connect’ between Open and Close and makes the two strength candles conductive to price flow through each other’s value ranges in a free flow manner in either direction without any obstruction to touch ends of both the candles.
Body Shunting classifies price flow in to two distinct values ranges:
To Identify the Price Flow direction, Blue Line connecting the close of Body Shunted Strength Candles are drawn.
And the next chart is the Indecision Zones for the same chart.
The Case Study explaining Candle-By-Candle Interpretation will appear in a separate post with slides.
Till then make the best understanding of the concept.