C-area
Last updated
Last updated
The C-Area refers to the price zone between the opening price of the current candle and the midpoint of the previous candle's range. It provides insight into early price positioning relative to the prior session’s balance and can serve as a contextual reference for potential intraday direction or rejection zones.
Bullish C-Area (MMXM Buy Model): Occurs when the current candle opens above the midpoint of the previous candle. The C-Area is defined as the price range from the open of the current candle down to the midpoint of the previous candle.
Bearish C-Area (MMXM Sell Model): Occurs when the current candle opens below the midpoint of the previous candle. The C-Area is defined as the price range from the open of the current candle up to the midpoint of the previous candle.
When price trades into the C-Area and respects the previous candle’s midpoint (i.e., shows rejection or consolidation without violating the zone), this confirms alignment with the respective MMXM directional model:
In a Bullish C-Area, holding above the mean often precedes upward continuation.
In a Bearish C-Area, rejection from the mean typically signals renewed downside pressure.
Bullish C-Area Invalidation: A bullish setup is considered invalidated if the current candle closes above the midpoint of the previous candle. This may signal stronger upward momentum, negating the significance of the C-Area as a bearish resistance zone.
Bearish C-Area Invalidation: A bearish setup is invalidated if the current candle closes above the midpoint of the previous candle. This close above may indicate a rejection of lower prices or a failed bearish attempt.
