Trading knowledge › Price Action Basics › 1/7 · 1 min read
A candle pattern only matters in the right place
Key idea: level first, candle second — no level, no signal.
Why
- At a level (prior high, prior low, range edge) many traders place orders — price reacting there means something.
- Mid-range, a "nice" candle is usually noise.
Try it
On a daily chart, mark the 3 clearest highs and 3 clearest lows of the last 6 months.
Does a pin bar in the middle of a range count?
No — away from any level, it does not count.
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Educational content, not investment advice. Leveraged trading can lose more than your initial capital. Examples are built on real PricePlaybook historical candles and scored by rules written in advance — past results do not guarantee future results.