The Magnet Block is the core function of PowerRanger. Our algorithm will analyze in real time the difference between candle patterns, price behavior and trading volume, and detect and select the horizontal area of a candle as a Magnet Block. Magnet Block can be used for:
Use the top or bottom edge of the magnet to set the TP target
Use a strong magnet as a short-term SL position reference
Increase the confidence value of short-term trend up and down
Assist in determining trend direction
concept
The magnet area is a visualization of a special area of imbalance between buying and selling. This area of imbalance between buying and selling is usually detected by the market maker's software, which guides the price to clear the orders with imbalance in its position, or guides the market price to return to its position in other ways. It is similar to some characteristics of OrderBlock, but not the same. The magnet area should not be used as a rational support or resistance, but it is very suitable as a TP target or short-term support, or a signal of risk warning. You don't need to understand how it is generated, because we only use its amplitude effect---like a magnet, it repels the price when it appears, and then attracts the price. So for it, you only need to remember four words: repel and attract. Please note when using it: 1. The analysis of the magnet is real-time, and you need to wait for the candle that produces the magnet to end before determining the generation of the magnet area 2. The magnet should not be used as support or resistance. It only has short-term support/resistance in the few candles just after it is generated 3. Learn to distinguish between strong magnets and weak magnets 4. After the magnet appears, it may be a few minutes, a few hours, a few months, or a few years. The price will almost always return to its position to fill it. 5. You should not assume that every magnet is a strong magnet 6. Magnets become ineffective after being filled, and the magnets after filling have no analytical value for subsequent trends 7. When a new magnet is born, such as a white magnet, it will give you a bias that the price will continue to rise. Please restrain this bias because the extent and time span of the magnet pushing the price far away are unknown. Instead, try to use its "attraction" function as much as possible, that is, when the price goes near the old magnet produced before, you can increase the bias that the price will fill that magnet. 8. It is impossible to judge the price trend based on the magnet, you need other analysis. Magnets are more suitable for setting TP targets.
time
You don’t know how long it will take for a magnet to be filled after it is born. It may take a few minutes, a few hours, or even months or years. We don’t need to know, because in daily trading, we only use the magnets closest to the price. But there is a way to observe the candle patterns of the magnets a short period of time before they are produced. We can simply distinguish between strong and weak magnets (see the example in the figure). Strong magnets: usually push the price further and take longer to fill back Weak magnets: usually filled back within a few candles
Reference TP target
The white magnet is always below the price, and the red magnet is always above the price. When you have a bias that the price trend will rise or fall in the future through other analysis, you can set TP1 above or below the magnet closest to the bias direction after entering the transaction.
Warning signs
When your trade is long, a red magnet appears. This is a warning that the price may start to fall in the next short period of time. It can be used as a signal to take profit in advance to avoid the erosion of profits by the subsequent possible decline. Do not regard the birth of the magnet as a signal to go long or short. Because the long and short bias should not be directly trusted 100% by a function.
