This post provides a step-by-step breakdown of seller strength, utilising candlestick psychology based on the “Sellers Power: Win or Lose Momentum” visual guide.
🔴 1. Total Seller Control
The candle is long, bearish (red), and closes near its low.
There is no buyer reaction, and momentum is strong.
➡️ Best for: Instant put/sell entry in momentum strategies.
🔴 2. Sellers Still Strong
Buyers try to react, shown by a small upper wick.
However, sellers still confidently push prices down.
➡️ Watch for a continuation, but with slightly more caution.
🟢 3. Buyers Showed Up (But Sellers Control)
Now, you start seeing a lower wick — buyers are trying to push back.
However, sellers are still in control, as the candle still closes red and strong.
➡️ A signal to prepare for possible reversal or price exhaustion.
🟢🔴 4. Buyers Stronger (But Sellers Still Lead)
Buyers now have a bigger impact.
The lower wick grows larger, meaning more rejection from buyers.
Still, the candle closes bearish, so sellers are slightly ahead.
➡️ Good time to avoid new trades or prepare for trend reversal.
🔴🟢 5. Power Struggle (Sellers Slightly Stronger)
Both buyers and sellers are active.
You’ll see a candle with wicks on both ends, showing indecision.
Sellers are still slightly stronger.
➡️ Not ideal for new trades, better for observing the next move.
🟢 6. Buyer Takeover
This is where the momentum flips.
Buyers are now clearly stronger, and the bearish candle shrinks.
A reversal or pullback is imminent.
➡️ Great time to stop selling and consider entering long (if trend confirms).
🎯 Key Takeaway:
Recognizing shifts in candle structure can help you:
- Avoid fake signals
- Time your entries better
- Predict trend exhaustion
Use this six-stage model in your Quotex or binary trading setup to make more informed entries, especially on short timeframes like 1-minute or 5-minute candles.
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