Universal Truth #2: Actionable Signals
Price only matters when it gives you permission to act
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The teaching
Price only matters when it gives you permission to act. An actionable signal is a specific candle behavior at a specific location, in alignment with timeframe context. It is not a feeling, not a bias, and not a prediction.
There are three signals. A hammer is bullish — Thor's hammer: sellers pushed price down, buyers bought it back up, and it closed near the top. A shooter is bearish — a hammer upside down: buyers pushed up, sellers pushed it down, and it closed near the bottom.
An inside bar stayed inside the prior candle's range. That is consolidation — and after consolidation, expect a big move either way. Expect calls, expect puts. Nothing here is 100%. It is probabilities.
Key points
- Actionable signal = candle behavior + location + timeframe context.
- Hammer (bullish): pushed down, bought back up, closed near the top.
- Shooter (bearish): pushed up, sold back down, closed near the bottom.
- Inside bar: consolidation — expect a big move either way.
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