Sponsored Candle (FU candle) is a candle that reflects liquidity removal manipulation on the chart, leading to a trend reversal. It often triggers a strong reaction upon testing (mitigation) in the future.
The schematic representation of a sponsored candle often resembles a candle with long shadows, sometimes significantly exceeding the height of the body.
Aggressive liquidity removal and structure breakdown on increased volumes indicate smart capital manipulation.
Sponsored candle is used as a tool for opening a position.
Similar to an order block, the ideal zone is considered to be 0.5 of the sponsored candle body, but in practice, price often reacts initially to the shadow and later to the body of the candle.
A secondary test of the sponsored candle body typically indicates that the large volume of smart capital orders used for manipulation couldn’t be closed (mitigated) on the first attempt.
