Understanding the Midpoint Magnet: Weekly Price Filling

The concept of 50% price filling on a weekly candle within a consolidation area relates to the common technical analysis practice of looking for a midpoint retracement before a potential breakout. When an asset's price enters a consolidation phase on the weekly chart—meaning it's trading sideways within a defined high and low (often forming patterns like rectangles or triangles)—traders view the 50% level of that range (the distance from the high to the low) as a key point of equilibrium or balance between buyers and sellers. This level, which is a psychological point often included in the Fibonacci retracement tool despite not being a true Fibonacci ratio, can act as a magnet where price action is likely to 'fill' or return to before initiating the next major move. Therefore, a weekly candle's wick or body penetrating and reversing at this 50% level suggests a rebalancing of orders and offers a high-probability zone for traders to anticipate either a continuation of the prior trend or a strong breakout from the consolidation range.

Consolidation area


Identifying Consolidation and Key Levels
Consolidation Area: The broader charts show the price of Gold Spot (XAUUSD) entering a period of sideways trading, characterized by alternating weekly bullish (green) and bearish (red) candles, often within a defined high and low range. This area represents a balance or indecision between supply and demand.

Key Candle/Range: The concept then focuses on a specific high-momentum candle (e.g., the Nov 2nd Week Candle) or the entire range of the consolidation to establish the boundaries for the analysis.

The 50% Level: The critical level is the 50% retracement (or midpoint) of this chosen range. This level is considered the Equilibrium (EQ) point, where buyers and sellers are perfectly balanced.

Example


On this chart, we see:
Each weekly candle dipped into the midpoint of the one before it,
Created reaction,
And built a foundation for continuation.
As long as the market keeps holding above the 50% zone, the structure remains intact and biased toward continuation.


During consolidation phases, the market often displays a repetitive behaviour:
each weekly candle tends to retrace and fill approximately 50% of the previous week’s candle before continuing in either direction.

This happens because the midpoint of a strong weekly candle is a fair value zone, where:
liquidity is gathered,
trapped orders are resolved,
and the market achieves balance before the next move.

How the Chart Demonstrates This

November 2nd week candle
A large bullish candle created a strong move upward.
This left an imbalance in price.
The midpoint of this candle sits around 4,122.
Following weeks
Price entered consolidation.

Each weekly candle retraced into the 50% zone of the previous week’s candle.
When price reached the midpoint, buyers stepped in again, causing a bounce.

Repeat Structure
This pattern repeated across the next candles:
wick down → fill midpoint → rejection → continuation

Showing a rhythmic behaviour characteristic of consolidation:
Slow pullback
Midpoint fill
Reaction
Next candle repeats
Current Candle
Again moved back into the midpoint zone, confirming the same behaviour.
Holding above the 50% level maintains a bullish continuation structure.

Why This Happens
The 50% zone of a strong candle is often where:
-institutions reload
-pending orders sit
-imbalances are corrected

This zone is neither expensive nor cheap — it’s fair value.

So, during sideways phases, price frequently returns there to:
✔ collect liquidity
✔ balance the market
✔ establish support or resistance

Before the next directional move occurs.

Key Takeaway

In consolidation, the market does not trend strongly.
Instead, it oscillates around the previous candle’s midpoint.