Filter Price Through "Candle Profiles" | GxT

Summary (finance/market-focused)

The presenter explains candle profiling as a price-action filter to avoid low-probability days and to determine whether price is likely to expand/continue versus reverse/turn back.

A central claim is that for a high-quality setup, both must align:

• Wick size (the “how” of the candle)
• The sequence/timing of candle formation (the “protraction phase”)

He repeatedly applies this framework to select session-based setups (e.g., London vs New York) and to manage targets/stops around:

• Daily/weekly opens
• “Protected swings” (failure swings / prior highs-lows)

He also outlines trade-selection logic based on:

• Whether the day/candle is expected to open low first (bullish expansion condition) or open high first (bearish/negative expansion condition)
• Whether there is a reversal + expansion in one (a small-wick reversal-into-expansion)
• Whether multi-asset strength switching / SMT behavior supports the move (e.g., cross-asset synchronization across instruments like ES/NQ/YM and metals like silver/gold)

Finally, he discusses adapting targets when wick size or candle formation prevents full expansion past the daily open.

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Instruments / tickers mentioned

• ES (E-mini S&P 500 futures)
• NQ (Nasdaq 100 futures)
• YM (Dow futures)
• RTY (Russell 2000 futures)
• Gold (mentions “gold” and “gold reverses”)
• Silver (mentions “silver”; also “silver catching up”)
• Gold & Silver pair behavior (silver vs gold strength switching)

(He also references “indices,” but no specific index tickers beyond the futures listed above.)

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Candle Profiling Framework (method / steps)

Step 1: Check wick size (first component)

• Wick size indicates how far the candle is likely to expand.
• Small wick + large body is favored for expansion because it implies less time in a “manipulation” phase and more time for expansion.
• A structure with a large opposing run from the open is typically avoided because it’s less likely to reverse and expand past the open within the same bar.

Step 2: Confirm candle formation sequence (second component: protraction/manipulation timing)

For bullish expansion days, the ideal behavior is:

• “Open low first”

He calls “open high first” a negative condition for bullish expansion because there often isn’t enough time/range to expand within the same candle.

Clarification:

• “Open low/open high” refers to the first side that gets manipulated:
  • If the low is manipulated first → treat as open low
  • If the high is manipulated first → treat as open high

Step 3: Distinguish candle types

• Expansion candle
  • Favored when wick size aligns with open low first behavior.
• Reversal candle (with small wick)
  • Can be a “two-in-one”: reversal into expansion if it opens low first and has favorable small-opposing-wick structure.
• Reversal candle (with large wick)
  • Typically reverses but is less likely to expand much past the open
  • Targets are usually adjusted closer (e.g., within the daily range / around the daily open)

Step 4: Use session logic (when to expect expansion)

He emphasizes London vs New York patterns:

• London reversal → New York continuation
• But only if the candle profile supports it (especially wick + sequence)
• If the candle profile is unfavorable, expect consolidation or “seek and destroy” behavior instead of clean expansion.

Step 5: Integrate SMT / strength switching and alignment

He uses SMT divergence / failure-to-manipulate logic, for example:

• If one asset sweeps a low but does not manipulate/reverse, the other assets are expected to catch up and reverse when strength switches.
• His broader argument: true reversals/expansions often require asset synchronization.

Step 6: Targeting / trade management

• Prefer targets that avoid protected swings / failure swings (he references a “driver” video).
• If expansion probability is high, targets may extend beyond the daily open.
• If wick size is large or candle formation is poor, targets are reduced back toward the daily open or within the daily range.
• Stops are typically placed at key swing highs/lows; he mentions cases including holding for expansion and reaching around 2.6R.

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Key numbers / performance metrics / explicit examples

• Example outcome: about 4.7R
  • Framed as a reversal into expansion candle / “candle two”
• Another example mentions: about 2.6R
  • With the stop referenced near a body level, and the trade held based on expansion expectations

Time references central to the methodology:

• 9:30 (described as a “driver” trigger in multiple examples)
• 8:30
• 10:00
• Session times like 6 a.m., 9:30, 11 a.m.

He also refers to candle numbering (e.g., candle 2 / candle 3 / candle 4) and expects behavior like a “candle three closure” or specific sequencing after entry.

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Recommendations / cautions (explicit)

• Avoid low-probability days by filtering via candle profile:
  • Don’t assume bullish/bearish direction solely from the open direction.
  • The likelihood depends on wick size and how the candle actually forms.
• Do not trade a “London reversal” unless the candle profile supports expansion, especially small wick + open low first logic.
• If the candle profile is unfavorable (e.g., open high first or large opposing wick), expect:
  • reversal-only / consolidation
  • adjusted targets often returning toward the daily open / inside the daily range
• He emphasizes aligning entries before “draw liquidity” / later phases to avoid getting trapped and to reduce losses (referenced as a course concept).

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Disclosures / disclaimers

• No explicit legal “financial advice” disclaimer language appears in the provided subtitles.

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Presenter / sources

• Presenter: “GxT” (referred to as GXT throughout)
  • References include “in my driver video” and other “videos,” but no external named sources are provided within the subtitles.
• Third-party source mentioned: AM Trades
  • Suggested viewing: “You should go watch that video on his YouTube channel.”