Original subtitles

Okay folks, welcome back.

And we're going to continue our discussion on reinforcing order block theory.

This teaching want to talk about propulsion blocks and a propulsion block

is a candle or bar that is previously traded down into a down candle or bullish

or block and takes over the role of price support for higher price movement.

In this example, here, Kay.

In this crude diagram, we have a down candle which shows price willingness

to move higher, and then we have a new.

Down closed camera, the trades, right back into it seen here that

candle becomes a propulsion candle.

What makes it propulsion is that it's already dropped

back down into a oner block.

That's already predisposed to go higher.

Then we created another high.

Order block that touches the initial one, that new higher level

bullish order block or down close candle will be highly sensitive.

It should never see the mean threshold, brake tap of the body's height or the

middle of the range of that candles body.

That that means thresholds should not give away.

The sensitivity is going to be very much more amplified.

When it trades back down into the high, but we are willing to allow this still

trade down in the middle of the range or a mean threshold, but it very most,

most likely it will never do that.

It just trades down into the high of the candle and immediately explodes

amigo pepper to below the high of that particular down candle, which

we're naming as a propulsion block.

The market will show a sudden and violent movement away from that downward.

That's a propulsion candle.

Let's take a look at it in price action, to get a better

feel for what it looks like.

Okay.

Let's just take a look at a bullish propulsion candle.

Okay.

Let me see prices, mood from a low here and we're on the buy side of the curve

and the market has several down candles.

So we would take this as one full bearish candle because consecutively

three down candles to the Bush or block

is framed like this.

So we have equilibrium down here, price trades all the way down to this

level here, but fall short, equally.

So we have a level at which price could reasonably trade down

into, but it doesn't do it here.

Should price trades lower here and rallies through its own

three consecutive down candles.

So this is an order block as well together, all three candles.

And then we have this candle right here.

Can you see this down here?

It's trading into these down candles together.

So this is all one bullet or block cause all down price movement

reaching for a level to buy.

Then price moves through this candle here trades through the

highest of the down candles.

So that confirms this is a bullish shorter block.

The very next Kayla trades higher and the next candle opens and

trades down into this candle here.

When this candle creates the down close and close.

This becomes a propulsion candle.

What makes it a propulsion candle is that we are trading another down

candle into a previous down candle.

When underlying context is bullish to powerful natured to a propulsion

candle is you don't ever really see a mean threshold violation on it.

So you get an opportunity to see a trade back down to, as it does here,

this candle opens trades down into.

Right there in the open comes in at 1 30, 3 45.

The low on this candle comes in at 1 33 45 because right to that candidate.

So that's a bullish entry here with the propulsion candle.

And again, all it is is it's a down closed candle that trades down into a

previous down closed candle or in this case, Oh, this is a 15 minute timeframe.

I don't have a way of showing you a 45 minute chart here, but it's the

same price action that what seen here, the down candle and trades into

this or block that would be bullish.

And then we see price trade higher.

And then come right back down into this candle here.

This is the propulsion.

That means we should see immediate responsiveness on bullish price

movement higher off this down candle.

Shouldn't trade back down until it again, here's the clue.

If we break the mean threshold, that type of candle, where it's already traded down

into a previous order block, it's bullish.

If this loses its mean threshold, chances are it's probably not a good.

Does that mean she didn't have a really ultra tight stop loss on your long

entry, or you can have immediate feedback that you're on the wrong side of the

marketplace and you probably are better off either going to the sidelines or many

times looking for a reversal to go short.

Okay.

We're gonna look at an example of a bearish propulsion candle.

Okay.

We're going to frame it around a higher bare shoulder.

It's this candle right here, price trades up into it here breaks down.

So now we're going to add another level of order Bach theory.

We have this last up candle.

It's the bare shoulder block here, referencing this one as well.

So now watch what happens.

We have price movement lower than we treat right back to this order block right here.

This candle becomes a propulsion candle right there.

So now we can cut that candle in half right here.

Boom hits it right there.

I mean, threshold trades immediately lower, and this is a cell

entry on the propulsion candle.

That's bearish and it'd be a seller there.

And we can also use a entry at a later time where it trades right

back into this candle's low, where it trades right here, hits it.

Responsiveness, immediately moves.

So look at the responsiveness.

After the trades into this candle, you have to see it break below.

This candle is low, which it does here.

Okay.

It's already showing a willingness to not want to go above that means threshold

here, but it breaks down and then trades right back up into this candle is low.

It doesn't need to go up to the body.

It's the low of the candle on the propulsion candle.

It's going to be very, very sad.

Hits it immediate, quick responsiveness as you would expect.

That's why they kind of gave me the name.

It's a propulsion Caitlin, because it propels price quickly and suddenly,

and it gives you immediate feedback.

Very little drawdown, immediate price, responsiveness.

That's exactly what we're looking for.

A short-term.

So, hopefully this has been insightful to you guys.

We're going to get more information as we go along in the month and we

start mapping out outlines and setups.

We'll see exactly when to anticipate propulsion candles until next time I

wish you good luck and good trading.