Statistical Levels

OHLC Range Map Statistical Levels

The OHLC Range Map is a dynamic tool that enhances candlestick analysis by mapping statistical levels based on the Open, High, Low, and Close values of each candle.

It provides a comprehensive understanding of market behavior by identifying key phases of price action, particularly manipulation and distribution.

These phases are critical for traders looking to spot potential reversals, trends, and liquidity draws in the market.

Statistical Manipulation Levels

Manipulation occurs when price is intentionally driven in a direction that misleads traders, often through large wicks or rapid moves.

By analyzing the range between the Open and the Low for bullish candles or between the Open and the High for bearish candles, the OHLC Range Map identifies these deceptive moves.

Manipulation levels are often seen as false signals intended to entice traders into taking positions in the "wrong" direction. Recognizing these manipulation levels helps traders avoid getting caught in misleading price moves and instead anticipate possible reversals.

Statistical Distribution Levels

Distribution, on the other hand, represents the true movement of price after manipulation, typically extending further in the direction of the market’s trend.

For bullish candles, distribution occurs when the price moves from Open to High, while for bearish candles, it extends from Open to Low. These distribution levels represent genuine price action and offer key clues for identifying liquidity targets, retracement zones, or potential reversals.

The OHLC Range Map allows traders to track these distribution phases and adjust their strategies accordingly, whether they are looking for breakout opportunities or potential reversals based on key price levels.

Statistical High/Low Levels

High/Low Levels are derived by applying statistical averaging methods—most commonly the mean (average) or the median—to a selected set of previous price highs and lows over a defined lookback period. By smoothing out short-term volatility, these calculations help identify price zones that more accurately reflect where the market has historically found balance.

Once calculated, these averaged high and low values are plotted on the chart as key horizontal levels. Traders use them as potential areas of support and resistance, where price may stall, reject, or reverse direction due to prior market reactions and order flow concentration. Because these levels are based on aggregated historical data rather than a single price point, they often provide more reliable reaction zones than individual highs or lows.

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By continuously analyzing these manipulation and distribution levels over varying time periods, the OHLC Range Map allows traders to gain deeper insights into market structure, increasing their ability to make informed, data-driven decisions.

Understanding where manipulation and distribution occur on each candlestick enhances the trader’s ability to spot opportunities and manage risk more effectively.