Market profile

The ultimate purpose of of fundamental data, technical indicators, candle and chart patterns is to identify specific points in price data, at which entering long or short could result in a profit.

At the most basic level, those critical entry points are

1. When price is consolidated and then breaks down; a good short entry.
2. When price reverses upward from a downward trend; good long entry.
3. When price continues an upward trend; good long entry.
4. when price reverses downward from an upward trend; good short entry.
5. when price continues a downward trend; good short entry;
6. when price is consolidated and breaks up; good long entry.

Figure 2.24: Price Pattern