When a Wide Range Bar (WRB) is present in the path of a price move, expect price to
1) pull back to the nearest support
2) Price breaks above the WRB in high volume
While managing and entering trades, always evaluate the influence of WRB’s esp the ones that leave a GAP. Wide Range Bars (WRB) with GAP are the ones that leave a GAP in the body of the candle that is not filled by the candle before it and the one after it.
Consider the price action below. Observe how the candles with a wide body and with GAP act as support and resistance. This is the most organic SR derived from pure price action. Wide range bars and candle gaps may be used for any time frame.
Candle gaps may be treated as GAP during a regular open, applied on a smaller time frame.