KB Trading · Framework Reference

The Profile Layer

Connective tissue between candle-level bias and structural range. Time-based allocation of directional energy across a four-candle segment.

Candle Position & Weight
High
1
Intent
Opens the profile. Sets directional tone. Everything that follows is measured against this.
Context
2
Respect or contest
Is candle 1 being respected or challenged? Adds detail. Does not yet classify.
Context
3
Continuation or shift
Confirms the mid-profile character. Equal weight to candle 2. Still building the picture.
High
4
Verdict
Closes the profile. Confirms, neutralizes, or invalidates candle 1. Hands off to the next profile.
Profile Classifications
Expansion
75–100% aligned
B
B
B
B
pure
B
R
B
B
functional

Majority of candles commit to one direction. Dissenting candle is retracement-type, not reversal. Frame holds.

Candle 4 → Confirms candle 1
Retracement
Direction paused, not broken
B
B
R
B
internal pause
B
R
R
B
deeper pause

Opposition is internal — sandwiched, not concluding. Fourth candle returns to candle 1's direction. Frame holds weakly.

Candle 4 → Confirms candle 1, weakly
Reversal
Frame broken
B
R
R
R
committed
B
B
R
R
late / deceptive

Fourth candle closes against candle 1's direction. The frame is invalidated. Committed reversals shift early; late reversals are deceptive but still decisive.

Candle 4 → Invalidates candle 1
Accumulation
No majority, no verdict
B
R
B
R
50/50
–
–
–
–
range-bound

Directional energy is contested. No clear majority by candle count or by body size. Fourth candle neither confirms nor invalidates. Do not trade.

Candle 4 → Neutralizes candle 1
Profile as Connective Tissue

A single candle can simultaneously read as a reversal at the bias level, a retracement at the profile level, and a continuation at the structural level. These are not contradictions — they are the same event observed from different altitudes.

Profile sits between bias and structure. It does not generate trade signals. It translates — telling you whether a bias candle is speaking for the structure above it or arguing against it temporarily. That distinction separates a high-conviction entry from a reactive one.

Allocation Summary
Profile Allocation character Sequence signal Candle 4 verdict Action
Expansion 75–100% directional Early commitment, held Confirms Trade in direction
Retracement Dominant, internally interrupted Opposition sandwiched Confirms, weakly Hold bias, wait for re-entry
Reversal Direction shifts, frame broken Opposition concludes profile Invalidates Reassess bias entirely
Accumulation Contested, no majority No clear sequence Neutralizes Stand aside
The Handoff — Candle 4 to Next Profile's Candle 1
Current profile closes
Candle 4 delivers its verdict. Expansion, retracement, reversal, or accumulation is classified.
→
Next profile opens
Candle 1 inherits the verdict as context. A confirmed profile opens with continuation bias. An invalidated profile opens as unknown — read fresh.