Your example candle was a hammer. "Inside-out" logic uses the previous candle as setup limits as you know and understand. And it works perfectly. There is no mystery as it is as flawless as anything in technical trading you may ever see. Why it works as it does is beyond me. It is all in personal observation and my desire to kick the market's ass. I'm glad you have grasped it as you have. Some people just don't get it for whatever reason.
easy
There comes a time when you define the moment, or the moment defines you. - Tin Cup
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