To correctly close the candle and confirm the trend, the following conditions must be considered:
1. Closing the candle outside the resistance or support level
- *Closing the candle above the resistance level:* If the trend is upward, the candle must close above the resistance level.
- *Closing the candle below the support level:* If the trend is downward, the candle must close below the support level.
2. Closing the candle on the appropriate time frame
- *Choosing the appropriate time frame:* The appropriate time frame must be chosen to confirm the trend, such as the 4-hour or daily time frame.
- *Confirmation of closure on the time frame:* The candle closure must be confirmed on the chosen time frame.
3. Trading volume
- *Sufficient trading volume:* The trading volume must be sufficient to confirm the strength of the trend.
- *Increased trading volume:* Trading volume should increase when breaking the resistance or support level.
4. Candle confirmation
- *Confirmation candle:* The candle that closes outside the resistance or support level must be a strong confirmation candle.
- *No inverse candle:* There should not be a strong inverse candle after the confirmation candle.
5. Market context
- *Overall market context:* The overall market context must be considered when confirming the candle closure.
- *External influences:* External influences such as economic and political news must be taken into account when confirming the candle closure.
Conclusion
To correctly close the candle and confirm the trend, conditions such as closing the candle outside the resistance or support level, closing the candle on the appropriate time frame, trading volume, candle confirmation, and market context must be considered. Strong confirmations of the trend should be present before making any trading decisions.