1). These candles are produced mainly when the market is confident in its future movement. As example, observe the formation time of candles, you'll see that most of them in the first 5 – 15 minutes, forming a shadow in one direction, then the price goes in the opposite direction, forming a candle body. 2) The second type of price in the process of forming a candle several times may cross the point of its opening (Fig. 2) and, as a result choose for your main movement direction of the 'first' shadow. These candles are formed, as a rule, amid uncertainty about the market, which way it go further.
3) The third type may include candles, which do not have the 'first' shadow (Fig. 3). These candles arise when strong market move aimed at one side of the emotions (eg, against Released Strong economic data and political news). As a condition for opening positions for our strategy, we take the algorithm for forming plugs of type 1. That is, we open a position in the reverse direction penetration point of the opening of a candle after the first price goes to one side and form a 'first' shadow (Fig.
1). However, setting such a condition, we must understand that the candles formed a 2-second type, in this case will give us false alarms. Therefore, the next step in the creation of our strategy, we must conduct research and gather statistics that would show us the frequency of spark 1 and type-2 (Spark third type of drop out our further attention, since it does not form a 'first' shadow, they do not fulfill the necessary condition for us to open a position.).