Candlesticks Basics - 3

In part 3, the speaker mentions that it is important to look at the development of a candlestick pattern.  Candle development involves breaking a single candle down into its components.  For example, if you are looking at a daily chart, it is important to break this overall price movement down into its hourly component candles.  Understanding how the stock went to its final destination is very important in determining intraday support and resistance levels.  He illustrates his point by providing three examples. 

Furthermore, the speaker moves on to candle addition, which is the exact opposite process of candle development.  Candle addition aims to take the components and move up to the higher level chart to come to provide an aggregate picture of the intra-day moves.
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