Intracandle CISD (IC-CISD) - Improve Your Entries

How's it going everyone and welcome back to another video. In this video we are going to talk about IntraCandle CISD, or the change in the state of delivery inside a candle, so ICCISD.

This is a concept that I created when I was forming my model to mechanically define the formation of a wick.

So let's get into the video. So first you have to understand what a change in the state of delivery is, and that is a shift in trend.

We use that by finding the level that hit a point of interest, so interacting with a fair value gap, a high or a low,

and then price closing over the series of candles into that point of interest.

So here you can see with a bullish change in the state of delivery, price reaches, takes out this low, and then closes

over the series of down-closed candles that took out this low, showing a shift in trend or a change in the state of delivery.

Likewise with this bearish scenario, it reaches into a high, price closes through the series of up-closed candles, showing the change in trend, and price shifts from bullish to bearish.

Now previously I have taught the reversal change in the state of delivery to confirm a swing point, so we look for that change in the state of delivery to format a reversal point.

But here we are going to look at it for a continuation to form a wick. So what do I mean by that?

If we have a candle two closure here, we have that reversal change in the state of delivery on the aligned time frame.

We're anticipating this candle three to open, make a low, and then expand higher.

So how did I come up with to mechanically define the formation of this wick being completed?

And that is a intra-candle change in the state of delivery. I'm looking for inside this candle, the trend to be bearish to go form its lower wick.

And then when that trend shifts from bearish to bullish, that is where I'm looking for that change in the state of delivery inside that candle or the ICCISD.

And then I'll look to trade that continuation higher or letting the wick form and then trading the body.

So here you can see this candle opens up. It has a short term bearish trend as it's forming its lower wick on candle three here.

And then I'm letting that wick form. Mechanically, how do I do that? I wait for a continuation to form.

Since this continuation forms a protected swing, then I can anticipate this wick to be formed.

So this is the intracandled change in the state of delivery.

Inside this candle, there was a bearish trend, it

shifts to bullish, and now we are realigned with our direction that we are looking to trade, anticipating this higher time frame wick to form and to remain intact as we continue higher.

So that is what the intracandled change in the state of delivery is, let's go into trading view so we can go over a few examples of this.

So here we are in our first example. You can see we have a candle to closure here. We have a valid change in the state of delivery.

And what do we have? We have a new continuation that has formed prior to the open of the new candle.

So we'd want to see this high remain if price is going to trade lower.

So if we're opening up right here, where would we want to see price react? Right here in this fair value gap.

So we'd want to see price do what? Have some sort of bullish trend to form its upper wick, have an intracandle change in the state of delivery, and then get a continuation lower.

So let's see what happens. Here you can see it's a bit choppy.

We're moving up into that point of interest. And we do have

a nice candle to closure here, but what are we looking for we're looking for that confirmation of the intracandle change in the state of delivery

so here you can see we hit a valid point of interest

by sweeping out a high here as well as into this fair value gap

and what do we do we have a closure through the series of up close candles into that point of interest so we have a valid intracandle change in the state of delivery

So what does that mean? That means that if I'm considering this a protected high intraday, that means this wick high on the daily chart, since we're on the hourly, which is aligned,

should remain intact if we're going to trade lower. So what can I do to actually act on this?

Well, I could either look to position myself here on the hourly prior to New York, or now that I have an area to trade away from, I can look for lower time frame bearish entry models lower here.

but let's see what happens here you can see we get

that expansion lower so you can see how letting the

wick form on that continuation candle letting

that intra candle change in the state of delivery form and

then looking to trade this lower so this

is a pretty good example of that intra candle change

in the state of delivery forming the wick and then looking to trade the body lower into the targets below and my indicator does a good job of showing those targets which are just those previous day's lows.

Let's get into another example. So here we are in another example, and what do we notice here? We have a nice candle 2 closure.

It's quite bearish. We have a nice V shape reversal, and we just opened in candle 3.

We have nice failure swing targets below. So what are we looking for, or what are we asking ourselves?