Welcome to Episode 7 of my series “Decoding the Algorithm” 📖 In...
Will Street@WillStreet_fx
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Mar 13, 2025
~5 min read
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Welcome to Episode 7 of my series “Decoding the Algorithm” 📖
In this chapter, we’ll discover how to catch the wicks and get perfect entries consistently.
Have you ever thought about how to always trade at the most optimal point of the move?🎯
👇🧵
In this chapter, we’ll discover how to catch the wicks and get perfect entries consistently.
Have you ever thought about how to always trade at the most optimal point of the move?🎯
👇🧵
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📌 Before anything else, if you haven’t watched the previous episodes, you need to check them out first.
In the previous episodes, I’ve covered:
✅ Previous Candle Purge
✅ Time-Based Entries
✅ Failure Swings
✅ The Logic Behind My Entries
✅ WS Continuation Model
✅ Why the 05:00 Candle is the Most Important Candle of the Day
Each of these concepts builds up to what I’m about to show you. Let’s dive in.
💬 200RT for Chapter 8 🔥
In the previous episodes, I’ve covered:
✅ Previous Candle Purge
✅ Time-Based Entries
✅ Failure Swings
✅ The Logic Behind My Entries
✅ WS Continuation Model
✅ Why the 05:00 Candle is the Most Important Candle of the Day
Each of these concepts builds up to what I’m about to show you. Let’s dive in.
💬 200RT for Chapter 8 🔥
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To know how to trade wicks, it’s essential to understand how they are formed.
These wicks represent the Open, Low, High, Close (OLHC) or Open, High, Low, Close (OHLC) of each candle, regardless of the timeframe.
Why? Because everything in the market is fractal. 📈
The same principles apply whether it’s a monthly candle or a 1-minute candle.
These wicks represent the Open, Low, High, Close (OLHC) or Open, High, Low, Close (OHLC) of each candle, regardless of the timeframe.
Why? Because everything in the market is fractal. 📈
The same principles apply whether it’s a monthly candle or a 1-minute candle.
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So, in a bullish market, the first thing we want to see after the opening price is for the market to move against our intended direction.
🚀 Bullish scenario: We want price to drop first before making its move upward.
📉 Bearish scenario: We want price to go up first before dropping.
Same logic, different direction.
🚀 Bullish scenario: We want price to drop first before making its move upward.
📉 Bearish scenario: We want price to go up first before dropping.
Same logic, different direction.
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By leveraging price fractality, all we need to do is move from a higher timeframe to a lower timeframe, following the exact same process.
📌 Step 1: Wait for price to create movement against your intended trade.
📌 Step 2: That’s where we execute.
📌 Step 1: Wait for price to create movement against your intended trade.
📌 Step 2: That’s where we execute.
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💡 We want to trade when the market looks the opposite of our intentions.
🟢 We buy when the market is dropping, and the chart looks extremely bearish.
🔴 We sell when the market is pumping, and everything looks bullish.
🔁 In simple terms: We execute when candles are moving in the opposite direction of our target.
🟢 We buy when the market is dropping, and the chart looks extremely bearish.
🔴 We sell when the market is pumping, and everything looks bullish.
🔁 In simple terms: We execute when candles are moving in the opposite direction of our target.
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📌 When does the wick of a candle form?
Here, you need to think about the WS Time-Based Model.
📍 If we want to trade an expansive candle, we need the market to first move against our intended direction at the beginning of the candle.
Here, you need to think about the WS Time-Based Model.
📍 If we want to trade an expansive candle, we need the market to first move against our intended direction at the beginning of the candle.
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🔥 This initial move creates the wick 🔥
For the rest of the candle’s duration, it has time to form its body.
We take advantage of this expansion by entering at the most optimal point, which is the Power of Three of the candle itself (OHLC/OLHC).
For the rest of the candle’s duration, it has time to form its body.
We take advantage of this expansion by entering at the most optimal point, which is the Power of Three of the candle itself (OHLC/OLHC).
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⏳ So, at what specific time does the wick of a candle form?
Since each timeframe works independently, what matters to us is that this happens at the beginning of the candle, as long as there are no high-impact news events influencing its movement.
Under normal conditions, the expansion of the candle will be created between 15% and 75% of the time the candle remains open.
Since each timeframe works independently, what matters to us is that this happens at the beginning of the candle, as long as there are no high-impact news events influencing its movement.
Under normal conditions, the expansion of the candle will be created between 15% and 75% of the time the candle remains open.
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💭 Once we know when the wick of a candle is likely to form, we need to determine our trading style.
Are you a long-term, medium-term, or short-term trader?
🟡 In my case, I trade intraday, meaning I enter and exit my trades within the same day.
Because of this, the most suitable timeframes for my entries are 4-hour and lower.
Are you a long-term, medium-term, or short-term trader?
🟡 In my case, I trade intraday, meaning I enter and exit my trades within the same day.
Because of this, the most suitable timeframes for my entries are 4-hour and lower.
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🔎 What we want to do is trade within the Power of Three of the higher timeframe candle, such as the 4-hour candle.
📍 Step 1: Mark the opening price of this candle.
📍 Step 2:
• ✅ Bullish? Anything below this opening price = buying zone.
• ✅ Bearish? Anything above this opening price = selling zone.
📍 Step 1: Mark the opening price of this candle.
📍 Step 2:
• ✅ Bullish? Anything below this opening price = buying zone.
• ✅ Bearish? Anything above this opening price = selling zone.
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But that’s not all. Now we know how to structure our entries.
✅ We already have the Power of Three from the higher timeframe candle.
✅ Now, we need to apply the same process on a lower timeframe to refine our entry to perfection.
🔍 Let’s go through some examples.
✅ We already have the Power of Three from the higher timeframe candle.
✅ Now, we need to apply the same process on a lower timeframe to refine our entry to perfection.
🔍 Let’s go through some examples.
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📌 The London candle expands from 3:00 AM onwards on 80% of days.
This means we do NOT trade before this time, except in rare cases like GBP news events.
🕒 What do we want?
✅ The 3:00 AM candle should take out either the high or low of the previous candle (before 3:00 AM).
✅ From there, we look for our trade using the same process:
• Buy below the opening price
• Sell above the opening price
This means we do NOT trade before this time, except in rare cases like GBP news events.
🕒 What do we want?
✅ The 3:00 AM candle should take out either the high or low of the previous candle (before 3:00 AM).
✅ From there, we look for our trade using the same process:
• Buy below the opening price
• Sell above the opening price
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By doing this, what initially was the Power of Three of the 4-hour candle (our trading zone) gets drastically reduced when we refine it on the 1-hour timeframe.
But when we also factor in the moment price takes out the previous candle’s high or low, our trading zone becomes incredibly precise, almost flawless. 🎯
But when we also factor in the moment price takes out the previous candle’s high or low, our trading zone becomes incredibly precise, almost flawless. 🎯
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London Lunch Example:
📌 In this case, we see a continuation.
🚀 The initial movement has already been established, meaning this new candle is simply following through.
Because of this, we look for entries below the opening price to align with the ongoing move.
📌 In this case, we see a continuation.
🚀 The initial movement has already been established, meaning this new candle is simply following through.
Because of this, we look for entries below the opening price to align with the ongoing move.
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New York Session Example:
📌 What happens when news events interfere?
Everything works exactly the same, except when news events create exceptions.
In this case, the wick is formed before the news release, allowing price to expand right as volatility kicks in from the news event.
📌 What happens when news events interfere?
Everything works exactly the same, except when news events create exceptions.
In this case, the wick is formed before the news release, allowing price to expand right as volatility kicks in from the news event.
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Final Thoughts:
💡 And just like that, we’ve seen multiple examples of how the most optimal entry forms and how we can take advantage of it.
🔥 This is how I do it. 🔥
If you study it, you’ll start to see the magic behind my entries, and how you can do it too.
💡 And just like that, we’ve seen multiple examples of how the most optimal entry forms and how we can take advantage of it.
🔥 This is how I do it. 🔥
If you study it, you’ll start to see the magic behind my entries, and how you can do it too.
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Bonus Content 🎥:
Before we wrap up, here’s a bonus for you.
🎬 This YouTube video perfectly complements everything you’ve learned in this chapter. It gives you a more visual perspective and a practical breakdown of how to apply it.
👉 Watch it here: youtu.be/HAQ88CqPoCc?si…
Before we wrap up, here’s a bonus for you.
🎬 This YouTube video perfectly complements everything you’ve learned in this chapter. It gives you a more visual perspective and a practical breakdown of how to apply it.
👉 Watch it here: youtu.be/HAQ88CqPoCc?si…
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Final Summary 🚀🔥
Trading is fractal.
We start by identifying the Power of Three on a higher timeframe and refine it down to a lower timeframe.
If you apply this, you’ll start to realize that the best entries always happen in this exact scenario.
💬 If you found this valuable, don’t forget to like and retweet! 🚀🔥
And remember, 200RT for Chapter 8. 🔥📈
Att,
WS🐺
Trading is fractal.
We start by identifying the Power of Three on a higher timeframe and refine it down to a lower timeframe.
If you apply this, you’ll start to realize that the best entries always happen in this exact scenario.
💬 If you found this valuable, don’t forget to like and retweet! 🚀🔥
And remember, 200RT for Chapter 8. 🔥📈
Att,
WS🐺