Which candle would you enter on? A, B or C

Three candles. Only one is a good entry.

Which one would you pick?

This is the Aussie dollar, four-hour chart. Support near 0.6906 held the week before.

Candle A: a big red candle, still falling into support. Nothing says the drop is over.

Buy here and you're guessing. Where does your stop go? You don't know yet.

Candle C: a big green candle, far above support. You'd be chasing the middle of the move.

Your stop would have to sit under support. That's a lot of risk for one trade.

Candle B: price tested support, then this green candle closed above the last two highs.

That's confirmation. It's near the level, and the stop is clear: just under the low at 0.6912.

So the answer is B.

Here's what happened. Within two days, the Aussie climbed to 0.70205.

Then it pulled back to 0.69653, below candle C's close. B was still in profit.

Save this. Wait for a candle that confirms. Enter near the level. Know your stop before you buy.

Your turn. A huge green candle closes far above the level. Enter, wait for a pullback, or skip? Comment below.

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