About this video

• Video Title: Candle 3 Closure: TTrades Fractal Model
• Channel: TTrades
• Speakers: TTrades (implied, as the channel owner and narrator)
• Duration: 00:11:59

Overview

This video explains the concept of "candle 3 closure" within the TTrades fractal trading model. It differentiates between continuation and reversal closures, and then details how candle 2 and candle 3 closures differ, with a focus on how candle 3 closure indicates a potential continuation after a failed candle 2 reversal attempt. The video also touches on how to frame trades using these concepts in conjunction with equilibrium and points of interest.

Key takeaways

• Continuation vs. Reversal Closure: A continuation closure occurs when price takes out a previous candle's high or low and closes beyond it, indicating a continuation of the trend. A reversal closure happens when price sweeps a previous candle's extreme and closes back inside, signaling a potential reversal.
• Candle 2 Closure: This is a reversal closure where candle 2 sweeps the previous candle's extreme and closes back inside, suggesting that candle 3 and 4 might trade in the opposite direction.
• Candle 3 Closure: This occurs when price does not sweep the previous candle's extreme (like in candle 2 closure) but closes over the body of candle 2, indicating that candle 4 is likely to continue in the direction of candle 3.
• Framing Trades: Candle 3 closures, when combined with points of interest (like fair value gaps) and higher time frame context, can be used to identify potential trade entries and targets, often using the equilibrium of the candle 3 range.
• Valid Swing Points: Not all swing points are valid. They must align with the fractal model, meaning they should occur at points of interest and exhibit either a candle 2 or candle 3 closure to be considered significant.

The key difference lies in price action relative to the previous candle's high or low.

A continuation closure occurs when price takes out the previous candle's high or low and closes beyond it, suggesting the trend will continue.

A reversal closure happens when price sweeps out the previous candle's high or low and then closes back inside it, indicating a potential price reversal.