The Candle Is the Box

Before the box image can do any work, you need to know what the box actually is. It is not the chart. It is not “the higher timeframe” in some general sense. It is a single candle.

That statement carries the rest of the book, so this chapter slows down and looks at a candle properly.

A Candle Is an Indicator

Most traders think of indicators as things you add to a chart — moving averages, oscillators, bands. The candle itself is treated as raw material, the thing the indicators are calculated from.