Intra-Candle CISD: Trade the Body — Step-by-Step Guide & Transcript

[00:00] How's it going everyone and welcome back to another video. In this video we are going

[00:15] to talk about inter-candle CISD or the change in the state of delivery inside a candle. So IC CISD. This is a concept that I created when I was forming my model to mechanically

[00:28] define the formation of a WIC. 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

[00:40] 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

[00:55] 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 a change in trend and price shifts from

[01:10] bullish to bearish. Now, previously I've 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 form a reversal point, But here we are going to look at it for a continuation to form a wick.

[01:25] So what do I mean by that? If we have a candle to closure here, we have that reversal change in the state of delivery on the aligned time frame. We're anticipating this candle free to open, make a low, and then expand higher.

[01:38] So how did I come up with to mechanically define the formation of this wick being completed? And that is a inter-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

[01:52] 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 We're letting the wick form and then trading the body. So here you can see this candle opens up

[02:06] It has a short-term bearish trend as it's forming its lower wick on candle 3 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

[02:19] forms a protected swing, then I can anticipate this wick to be formed. So this is the intracandle 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,

[02:33] anticipating this higher timeframe wick to form and to remain intact as we continue higher. So that is what the intra-candle change in the stated 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

[02:49] see we have a candle to closure here. We have a valid change in the stated delivery. And what do we have? We have a new continuation that has formed prior to the opening of the new candle. So we want to see this high remain if price is going to trade lower. So we're opening up right

[03:05] 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 this upper wick have an inter candle change

[03:17] in the state of delivery and then get a continuation lower so let's see what happens as you can see it a bit choppy we moving up into that point of interest and we do have a nice candle to closure here but what are we looking for We looking for that confirmation of the inter candle change in the state of delivery So here you can see we hit a valid point of interest

[03:38] 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 inter candle change

[03:50] in the state of delivery. So what does that mean? That means that if I'm considering this 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

[04:06] 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 so let's see what happens you can see we get that expansion lower so you can see how letting

[04:24] the wick form on that continuation candle, letting that inter-candle change in the state of delivery form, and then looking to trade this lower. So this is a pretty good example of that inter-candle

[04:36] changing 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 phase lows. Let's get into another example. So here we are in another example,

[04:50] And what do we notice here? We have a nice candle 2 closure. It's quite bearish. We have a nice B-shape reversal. And we just opened in candle 3. We have nice failure swing targets below.

[05:02] So what are we looking for? Or what are we asking ourselves? Has candle 3 formed its wick yet? Well, where do we want to see it form? Well, that's where the T-spot is. And do we have a point of interest right there? We do. So we can mark that out. This is ideally where we want to

[05:16] see price trade into. Why would I not want to see price trade into this gap up here? Well, that's too high up. I don't want to see it trade that high because then it's less likely to expand. So what are we waiting for? An intracandle change in the state of delivery. Have we gotten that yet?

[05:31] No, because price has yet to close below this level. So I don't know if this look has formed yet. And here you can see price has closed below this level. So now with the intracandle change in state of delivery inside candle 3 I can anticipate that this high is protected and that means that

[05:47] this higher time frame which should form so if the which is formed we can look to trade the body away so then I could look to take energy on either the retest or the close and my flop either on the bodies or the high in this case I'll probably use the bodies so I can get around 2r to this low

[06:02] and then I want to see if this gets a continuation lower now once this forms I'm also able to refer new continuations within this candle Here you can see, we do get a nice drop through that low.

[06:15] Do we get a continuation off of this? Well, what we want to look for, a new continuation to form. What do we have? Price reaching into a fair value gap. I have a new continuation that formed, so I could also look for a continuation there.

[06:29] But for me, since we already took out a lot of these lows, I prefer this first entry. Let's see what it would look like on the second entry. In this case, let's zoom out. Let's see what our targets would be. Ideally I'd want to target into these lows, so I'd probably look for a retest entry just

[06:46] to see if I can get 2R out of this. So let's see what happens if I can get 2R right there. We'll see if we get filled. And it looks like it would just miss us but you did get a continuation lower So just to review this example what are we looking for Well by going back up here we have a candle to closure so we have a bias for this candle

[07:09] Then we're just trying to see when this wick has formed. So we let it open at this candle. We couldn't say that the wick has formed. We can't trust that. This next candle, we also can't trust that. On this next candle, when we get the close through, it's showing that this candle has opened,

[07:23] made this high, and then formed a protected swing, which I can trade away from, looking for this continuation lower. So here we are in another example, and what do we have? We have a candle two closure with a change in the stated delivery, and we have displaced lower, and we are opening

[07:40] up in candle three. What are we going to look for? We're going to want to ask ourselves, has this wick formed yet? Now mechanically, we can just wait for that inter-candle change in state of delivery. Have we formed that yet? No, because we'd need to close below here.

[07:55] We make a new high, which gives us a valid point of interest. What would we need to close below? This level here. So let's see if that forms now. And it does. So you can see, here is our first

[08:07] intracandle change in the state of delivery. The continuation inside this higher time frame candle, which forms a wick, and then we could look to trade that lower. And here you can see, because of how it forms, it gives great risk to reward to our previous day low, so I can get right

[08:21] around 2R at that low. Let's see if that works out. And you can see it does hit our 2R right there. So just to say once again, what are we looking for? We're looking for that continuation inside

[08:34] the continuation candle to form the wick of the higher time frame candle. Let's get into another example. So here we are with a candle to closure, and you can see we have a V-shape reversal in SMT

[08:46] as shown by my indicator and we are in candle three. If we're looking to trade candle three what do we want to do? We want to let the wick form and then trade the body of that candle. Here we have a point of interest, we have a fair value up right here in the t-spot. Let's see if

[09:01] price reaches into that. The price immediately goes lower into a target here. Let's see if we get a retracement or a reversal. Here we get a little consolidation and a move up into that point of interest. Now with the ICCISD it is ideal to have this form in the beginning of the candle

[09:19] so this candle can really expand lower. Here you can see we've taken most of the candle's time and quite a bit range right we make a move lower move higher and now a move lower again to form. So if we do form this change in the state of delivery inter candle or the ICCISD right it's

[09:36] ideal to wait for the next candle to trade this and here you can see we do get that. Why would we want to wait for the next candle because we get a new candle with new range we now have another hour for this candle to expand so here i could look to take this entry either put myself here

[09:52] put it on the high and look for 2r or i could also wait for what a new entry candle change in the state of delivery or the wick formation of candle 4. in this case we'll just take an entry there see if it will work out we'll look for a retest entry so we can get decent risk to reward

[10:07] and there you can see we do get that retest entry and it moves lower. So what can we learn from this example? It's more ideal if the entry candle change in the stated delivery happens early into the candle so it can expand. If it happens towards the end of the candle and it's still valid then I'm

[10:23] going to be looking for the next candle to have that expansion as it gives new range. So here we are in another example you can see that the candle threw closure and we are opening up right with a point of interest right here So ideally what would we want to see Price open make a high This is a short term or a lower timeframe bullish trend Shift that trend with an intracanal change in the state of delivery and then get a continuation lower Once again it ideal if it forms early into the candle so it can trend lower Let see what happens

[10:54] And here you can see we reach into that point of interest. Do we get the closure? Not yet. And if you see my continuation video, ideally we get it on this next candle, or if it spends too long consolidating, then it could fail.

[11:07] Let's see. And there we get that continuation. So I could look to take a short setup, put myself on the high, and look for a continuation lower. If that doesn't give me a good risk to reward, I can always look for a little bit of a retest

[11:20] to get to R. And you can see we form a new continuation and does this trend lower? Takes a bit of time, but it does. So you can see how that protected swing inside candle 3 here forms the wick high of that

[11:35] candle 3. And the same thing here with candle 4. You can see candle 4, what does it do? Reach into a point of interest or a fair value gap, price closing over this level.

[11:47] confirms the wick of candle four right there and then it gets that continuation lower so there's not just an inter candle change in the state of delivery in candle three but it's also in candle four so let's go ahead and zoom out to the daily chart and see if we can find one more example so

[12:03] we'll wait for a candle to closure on the daily and let's see there we found one let's go in here and see if we can find an inter candle change in the state of delivery so here we have a candle

[12:15] to closure right we have a bit of a range and what are we looking for well we'd want to see price reach into a point of interest if price is opening up here what is our point of interest running out

[12:27] these lows here so let's see what happens it runs out the highs first goes aggressively against our bias and that's okay right you can either invalidate your bias i wouldn't invalidate

[12:40] my bias because it's not a reversal off a previous day high but i want to wait for a new continuation So I either need this to get bought up rather quickly to form a candle 3 closure and then look for that to trade higher,

[12:52] or I need some sort of consolidation and a new sweep because I need a new point of interest. You can see, that is more of a consolidation. Really hard to trust this level here, so I need another sweep.

[13:04] And who knows, maybe this one will fail. And there you can see, we do get that aggressive move out. So now what do we have? We have a continuation that is formed inside our candle 3. So now I anticipate that this wick has formed on the daily time frame so I could look to trade it higher.

[13:22] What is my target? That daily high there. So ideally, putting myself on the low and being able to get 2R to that high, which is right around the retest entry. So we'll see if we get tagged in.

[13:34] And if not, we don't. And we don't get tagged in, and that's okay, right? We could look for a higher time frame target. That's okay. I was looking for 2R to this short-term target. Now I hope you enjoyed this video and it taught you how to let the wick form and then trade the body.

[13:50] And if you don't have the patience to let that wick form, then generally you become the wick.