Hi Rick, the concept of control candles really gels with me. For a long time I have had the view that every candle, no matter what timeframe, controls price until it does not. By that I mean every candle has a high, low and range, and 99% of the time the following candle opens inside the range of the previous candle. This means that price continues within the previous candle's range until it either breaks the high or low. Often you will see price hit and break the high or low (or both) several times setting new higher highs or lower lows. This behaviour represents some level of support (at the low) or resistance (at the high) of that previous candle. But until price closes outside a cnalde's high or low my view it still retains control over the price action. My observation also is that often a candle that has demonstrated significant control (controlled price for several bars afterwards) then it may in future still exert some control - this would typically be because it has controlled price action within its range for several bars, that has created a liquidity area (to use Spec's terminology) and this area will present either support or resistance in the future.
The UCAD example - at least on the hourly - has demonstrated this very nicely imo (see below with that candle I've marked previously) where a control bar that has proven to be significant has exerted support at a later time when price has returned to it. Larger raange bars such as the one on Friday night tend to be more obvious in exhibiting this behaviour, but if one watches the price action closely enough it is normally possible to single out one particular candle ahead of pretty much any consolidation area as being the bar that is in control.
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I am watching the UCAD purely to see how price continues to behave in relation to that candle I've highlighted, but I suspect as you suggest that that large candle from Friday will also be a control bar for a period of time.
Cheers, Sharks
