 Everybody, it is Swing Jam with Xshirts, and today I'm going to be covering what are change of character candles. So change of character candles are essentially candles that are printed that change the trend. So if we're going in a sideways range, like we see here for spy, and we see this gap and go with volume as a breakout of this range, this is a change of character. After this candle is printed, we saw a large rally. Spy is a very good ETF to use as an example, because when they do print change of characters, it has drastic effects upon the entire market. If we go back to the COVID drop, as we could see, once we saw this large gap and go downwards, we had a complete change of character. Before then, we were kind of having low volatility, tight ranges and starting to form sideways action. After the gap and go, we see large volatility, large spread candles and large downside movement. This is a very good concept to understand and utilize to see when breakouts of, you know, channels, trends, ranges, and to breakouts of new all time highs are held and they're meaningful. Another example we see here is GDX, and if we go to the current price action, we could see neither is orange arrow. After we see this gap and go, the entire characteristic of the stock changes. Before then, if we zoom out to the longer time frames, we're in a continuous downtrend. After this gap and go, we get upwards momentum. When there's downward selling pressure, the volume is very small and there's no momentum. Before hand, we would see large gap and goes with high volume that set the trend for the next month and a half to two months. After this change of character candle, the exact opposite occurs and we start base building with higher lows and higher highs. So again, if I looking for GDX here, what I want to see is a gap and go above this level of 4013 and we should be able to see some nice momentum at least to the 4328 level, but more likely we'll break out this 46th level and probably head to $50. When you get these nice tight ranges near relative highs, you want to see that continuation with those change of character candles. Again, we could do the same thing with the Wayfair back down here. As you could see, once this large green spread candle was printed, look at the change of character. More than we are making lower lows, lower highs, spreads are not that large. Afterwards, we were in a nice strong upwards rally and we went up around 922% in a matter of five months. So you could see this across all different types of stocks and the way you could tell that these change of characters are going to hold and be meaningful is two ways. A, the volume and B, the location on the chart and I'll add a third one in the next two or three candles. What's the continuation looking like? So if you get a nice gap and go with large volume, what you want to see usually is at least the upper 25% of the candle holding as support. For this example, we actually gapped again and held the high of the gap and go, the change of character candle as old resistance now turning into new support within this mini range. And that's exactly what you want to see. I would say that this tool is best utilized when it's within ranges or within distribution and accumulation ranges. Just because when these candles are printed, it's a good time to enter and it's a good confirmation that this is a breakout occurring within the range. So I hope you guys enjoyed the quick video about change of character candles and I hope you guys have a great trading week.