ever since the mmt started in the beginning of 2023 I introduced people to Kendall science these here are few results from that I even showed that you can get funded just purely using kendle signs before we do anything let me just warn you kendle science is not for the week this is extremely advanced stuff but once you understand it A Whole New World opens up to you so how can we make sure that you understand this advanced stuff named kandle science well there's three steps First Step BD raise Second Step respect versus disrespect third and
final step is the story now before diving into step one to understand Kendall signs fully we need the origin story of how I actually got to Kendall signs and that was purely based off of fair value gaps I was always fascinated by fair value gaps and to this day I still am now as with any other person I thought fair value gaps were just a standalone concept meaning there's not nothing more to it it's just a three candle pattern but once I start to take Fair Valas more serious and I start studying them in the
chart I actually found out that they are the basis of any concept that you can think of so imagine you walk through one door thinking it's just one simple door and behind that door there's a whole new world of doors with a lot of opportunities and one of those doors is kandle Signs Now candle science is reading and understanding what happens in a singular candle and based on that singular candle we can understand what the next candle and candles will do so what do these fair value gaps and have to do with anything and why
did I start the story off with fair value gaps because when we look at a singular candle you at the same moment in time are looking at a lot of fair value gaps why well if we take this daily candle right here and we go down into the 15minute time frame then on the 15-minute time frame we see all of a sudden a lot of fair value gaps where on the daily we only saw one singular candle so instead of trying to read and understand what all these different 50-minute Val gaps want to tell us
we can just simply look at One Singular candle so why and how can this even be useful well that's where the three steps come in where the first step is understanding PD Ray candle science on its own can be quite confusing so we want to combine it with PD Rays now for Simplicity sake we're going to combine it with three PD rays in this video where the first PDR is of course you guessed it fair value gaps the second one is Swing points so swing highs and swing lows the third one is previous candle high
and previous candle low these PD Rays can be used to trade from and can be used as a Target and then kendle science will constantly guide us and will tell us what the next Target is so what the next BD array is that we are moving towards so before we move on and you can do this with me if you mark out every single PD Ray on your chart doesn't really matter what time frame it is as long as you mark out every single PD Ray that we just mentioned the three PD Rays then you
will see that price is slowly starting to tell you a certain story so here we have this swing high and here we have this fair value Gap as well right there we have this swing low we have this fair value Gap right there then we have this swing high sitting right there as well this fair value Gap and and this swing high right there now previous candle highs previous candle lows I did not mark them out right now because the chart already in itself with just swing points and fair value gaps is already quite full
there's a lot of things going on in the chart previous candle highs previous candle lows they will come in handy later on but if we now Focus just on these swing points and fair value gaps then we can see how kendle science is trying to guide us towards the next Target so how can we actually know that well that's where step two comes in we understand in Step One the P step two is about respect versus disrespect with candle science we can do one of two things respect and disrespect the first thing that we're going
to discuss is respect when we talk about respecting a PD we are mainly talking about we are wicking the PD Ray and let me explain why if we first focus on just these two PD Rays right here this swing High towards the left and this fair value Gap right there Then in both scenarios you can see once we come above that swing High we only have a wick above the swing high and in this fair value Gap right there we only have a wick into that fair value Gap when that is the case we are
respecting that PD Ray meaning we can continue lower off of this PR Ray and we can continue higher off of that discount rate towards the next PD rate towards the next Target so we can continue in the direction of the respect the respect here is bearish respect there is bullish towards the next BD Ray and why why happened there well if we take a look at this swing High what actually happened in that candle we first open up right there then we continued higher for a little bit so price was at that moment in time
at that high and then it came back down so there's a wick created the same at the bottom right there we first continue lower we open up continue lower and then when we continue lower all of a sudden we continued higher again right there now that is all very logical but remember what we said when we look at One Singular candle we are at the same moment in time looking at multiple fair value gaps because on the lower time frame what happens right there well we first get a move lower like this right there and
then we get a move higher and on the lower time frame that will be seen through fair value gaps that we have in that lag and the same for that pray right there we first continued higher creating fair value gaps on the lower time frame right there and all of a sudden we create this reversal creating fair value gaps going lower right now on the lower time frame which is then seen through those Wicks right there on the higher time frame candles so when looking at the PD Rays we can see what happens when we
start to respect them we move in a direction of the respect this fair value Gap right there that fair value Gap this swing high this swing high as well but that is only the first part because that's respecting but we also had the opposite thing which is disrespecting when we are disrespecting we're not wicking we have a body close inside the pay so again the body is if we take away the Wicks that is the body it's the bigger part of that candle so if we take a look at this swing low sitting right there
then we see we disrespect that why because what actually happened right there well in that singular candle we again see multiple F gaps but it's a different story than that Wick story because in the wick story if we take that bullish candle we saw something like this where if we have a disrespect candle we only see something like this we never get that reversal to all of a sudden continue higher so that means we're not respecting it the fair value gaps on the lower time frame are just continuing lower so when we create a disrespect
candle like this then we can understand we can continue in the direction of the disrespect so in this case we are disrespecting this swing low right there meaning we can reach for a lower PD Ray in the form of this PD Ray right there to then seeing if we want to respect that disrespect is either a close below a swing low or a close above a swing high or a close inside a fair value Gap again there's an exception to that rule and that is previous candle High previous candle low because let's say we have
a swing low like this for example why if we disrespect it we still continue higher afterwards well the first candle that reached below this swing low right there and actually closed below the swing low so we could assume it wants to continue lower right well if during that candle right there we close very low below that swing low meaning we don't have a long Wick then we still need to take into account the previous candle low that we have right there which we can continue higher from this is something if you start studying this this
is what we use a lot in the mmt you'll start seeing it everywhere so let me explain why that even happens why we have that Sweep with the previous SC low and why that still counts that is because during this candle close right there we come below this low very late during that day meaning during the same day formation we don't have the time anymore to actually create that rejection create that reversal start respecting That Swing Low to then continue higher so what happens is price consolidates a little bit then use the previous candle low
also liquidity to sweep it to then continue higher which is something that you'll see here for example as well which also happened with this swing High towards the left right there when you have a high close in for example swing high right there and that means during that candle formation the first candle it didn't have time to reject so it uses the previous candle high right there to then continue lower because what is a previous candle high on the lower time frame swing High so that Wick right there that happens above that previous candle high
that is on the lower time frame a sweep with fair value gaps like this on the lower time frame so we're reading a lower time frame story by just looking at singular candles and that's the beauty of it and step number one was understanding those Speedy rats step number two respect versus disrespect we understand those different type of candles and what happens underneath so if you did step one and step two on your own chart with me you will now see that price is trying to tell you a story but you first have to understand
the language which is candle signs so what exactly is price trying to tell us and how can we now capitalize on it this is where step number three the story comes in and in the story we first need to understand that in trading we are always moving towards a next PD so we're always moving from PD to PD to PD to PD Ray that is always going to be the target our job as Traders is to find out towards which PD Ray is price heading next and we don't need to know that every single trading
day but I always mention in the mmt there are going to be certain days where price is going to be so stupidly obvious that my four-year-old niece could see where price is headed next now those are the days that we want to capitalize on it so again not every single day but the days that are extremely clear and that creates a story when we talk about those clear targets and those clear draw liquidities again I'm mainly talking about swing highs and fair value gaps does previous candle highs previous candle lows yes we still need them
to understand the overall story but they're not the main targets if we go up in monthly you can use them as a main target for example because they're going to be further than just a daily previous day low previous day high but the longer term targets fair value gaps and swing points so if we now create the story understanding those steps then here we see we have this swing high right there which previously was quite a clear Target and that's exactly what we're looking for and afterwards after reaching this swing high can we now continue
higher well first we have to understand right here that we are respecting this swing High meaning we can continue in the direction of the respect the respect right there is bearish so we can continue lower a little bit well what can it continue lower towards but what do we have we have this fair value Gap right there again when you Mark out all those PD Rays this is something I used to do when I learned about trading just simply Mark out every single PD Ray and that way you can see the price is constantly ping
ponging between those py rays and it tells you a certain story you just have to understand the language to read the story then right here it's very logical that we ping pong from the swing high right there to then back to the fair value Gap because that's the next PD rate that it can reach for and kendle science is telling us that so once we reach for that daily value Gap right there then what do we do well here we also respect the daily fair value Gap so we could continue higher with a potential Target
that we have now also added that swing high right there keep in mind right here the previous candle High because once we reach above that previous candle high right there and you can just adjust right you just react at that moment time you don't have to know at that moment time that we are going to reach that swing high no as soon as you see this down candle respecting that previous candle high right there what does that tell you well if we were bullish what should have happened off of a previous fair value Gap and
this is extremely Advanced off of a previous fair value Gap what is supposed to happen what are the next few candles supposed to do create a new fair value Gap so I mentioned this so many times a fair value Gap should always create a new fair value Gap if that doesn't happen then the fair value Gap low right there and the low that we created in the F Gap actually becomes the target so here we are clearly not creating an expansion phase candle higher right there to actually create that new F valab higher such a
small detail but the Beauty and the secrets are truly in the basics so here what are we now doing we're sweeping that previous day high we are not creating a new F Gap off the previous F Gap so from this close of that candle towards this next discount array right there and potentially even that fair value Gap if we disrespect the swing low that is the next Target and these are days right here where again the draw liquidity is just simply quite obvious that we can capitalize on that in the lower time frame here we
see the same thing we come into that fair value Gap right there first day do we see big rejection somewhat of a big rejection second day right there we continue higher so what kind of Prem rate can it now reach for well we have all these previous day highs right there but we've also now left behind this swing high right there which on the lower time frame again we can capitalize on that funny thing about candle signs you don't even need a lower time frame because if you understand a singular daily candle then just the
daily time frame can be your bias your narrative your entry all in one then reaching That Swing High what do we do well we respect it so what is a logical next Target we can potentially reach for this discount rate it's the only discount rate that we have right there again those previous candle highs previous candle lows they come in very handy to understand what the closer targets are and if we are still going to respect a certain PD rate like we mentioned longer term targets swing points and fair value gaps now at this moment
in time we actually at that swing low have also created funny enough a weekly fair value Gap sitting right there and see what happens on the weekly on the weekly time frame we now have created this weekly for Gap and we also buy by coincidence funny enough we also respect that swing high right there with that candle to then retrace back into it to then potentially continue higher off off towards the next Target that Weekly swing high that we have left behind as well so on the daily if we continue right here and we deliver
into that Weekly Fair Val right there previous candle low sweep right there that is where those previous candle lows previous candle Highs are important to understand then remember that we are coming off of a weekly fap and we have a daily fori Gap going against us right there so what is stronger a weekly fi Gap or a daily F Gap the weekly fi Gap is always going to be stronger because it's on the higher time frame it's above the daily so the probabilities are already in our favor that we are actually going to continue higher
gets confirmed with a nice rejection right there afterwards we see somewhat of a rejection of the daily fair value Gap by this long Wick that we have right there so if we now go down in time frames and see how we can capitalize on it with the proper confirmation then we can go down to the 4our right now and on the 4our again we see the big rejection off of the daily F Gap right there but we also leave behind this 4-Hour F Gap sitting right there which we can again potentially continue higher from so
once we sting into this for our VAP what do we see we start respecting it to then again continue higher keep in mind the overall High time frame Target that you had the original Target that we had was still this weekly swing high right there so the lower time frame all that we're looking at is for the lower time frame to align with the ID of going higher so on the lower time frame we can do the exact same thing we can Mark out all those PD rats and see what are we reaching for next
on the 4 Hour we saw this 4our V getting respected to then swing high right there to then that those swing highs right there and on the 1 hour we can do the exact same we have this 4our Val Gap right there we have this 1 hour Fair Val Gap sitting right there as well we also create this 1our V gap which we actually do not have a sting back into we first could argue we are respecting this bearish 1our V Gap but then afterwards we continue higher potentially reaching for these swing highs afterwards these
swing highs and our higher time frame Target that we still had the weekly swing high right there so all we need to find is off of these F gaps a new F Gap and once you have that new FV Gap that is your sign to take an entry right there and you can even go crazy with this because if we now go into the 15 minute and we again do the same thing we have all those different PD Rays then we'll see that we are constantly respecting those bullish PD Rays to then continue higher off
off and the entry here is the least of your concern Buy on any candle right there and you'll probably be fine the most important part was understanding that candle signs on the higher time frame and that's arguably also the most difficult part now this is now even stronger if you now combine it with the understanding of this fair value area right here that we had on Euro US dollar to understand why it actually continued lower right there and not continued higher this is exactly what the previous video touches on so you can go ahead and
watch that after this one now my advice start doing case studies on candle signs start seeing it over and over and over for example start seeing how this situation currently on EUR US dollar plays out right there we have this fair value Gap right there and what are we doing are we creating a long Wick or are we creating that body closure right there that's important and then see what the next few candles right there want to do based on that candle stick to this understanding for years to come start building on it through again
your own studying and the money will come in soon sooner or later all right perfect thank you