A note on Extreme Wick Reversal Setup

raghavs1ngh Updated   
I read about this setup from the book Secrets of a Pivot Boss.

This setup gives exceptional results in the opening 30 minutes of the trade, especially when there is a gap up/down opening.

In this setup, you look for :-

1.) The opening candle should be almost twice in size than the average size of candles in the lookback period.
2.) The opening candle should in the direction of existing trend.(not necessary)
3.) The second bar should oppose the first.

In our example, the BANKNIFTY index opened with gap up opening, second candle was of bearish nature.
The second candle lead to a pull back phase, in which it came crashing down near to H2 and stayed there for most part of the day.

Next time, when you observe such setup, after confirmation, trade in the pull back direction.

Below I will add more examples, in which you can see this setup, changing the direction of index within 30 minutes.
In this graph, the opening and the second candle were of opposite nature. By the end of 13th, the index went up higher.

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