Two candle strategy

Discussion in 'Technical Analysis' started by karthik_sri, Sep 30, 2013.

  1. karthik_sri

    karthik_sri Well-Known Member

    Joined:
    Jul 20, 2007
    Messages:
    851
    Likes Received:
    1,969
    Trophy Points:
    93
    Location:
    Chennai
    Dear TJ Friends,
    After a long time coming up with another strategy "TWO CANDLE STRATEGY". There will be no Indicators involved in this strategy and Trade is purely based on the TWO CANDLE!! I have started using this strategy for quite some time and thought to share with you all. Will come up with my Strategy with Rules:)

    Cheers
    Karthik
     
  2. Rish

    Rish Well-Known Member

    Joined:
    Feb 12, 2011
    Messages:
    1,692
    Likes Received:
    2,548
    Trophy Points:
    113
    Location:
    Kodaikonal
    :thumb::thumb::thumb:
     
    narayan78 and karthik_sri like this.
  3. anup

    anup Well-Known Member

    Joined:
    Sep 26, 2012
    Messages:
    1,774
    Likes Received:
    2,197
    Trophy Points:
    113
    Welcome Sirji, I am one of the biggest fan of your all strategy.. Will be watching closely
     
    narayan78 and karthik_sri like this.
  4. jamit_05

    jamit_05 Well-Known Member

    Joined:
    Nov 11, 2005
    Messages:
    6,177
    Likes Received:
    7,746
    Trophy Points:
    113
    I probably have a vague idea about this strategy. This strategy has worked wonderfully since in all of 2013. But, it has some inherent flaws. Did you see its performance in Oct, Nov, Dec of 2012?
     
    narayan78 and karthik_sri like this.
  5. karthik_sri

    karthik_sri Well-Known Member

    Joined:
    Jul 20, 2007
    Messages:
    851
    Likes Received:
    1,969
    Trophy Points:
    93
    Location:
    Chennai
    Bro I have not posted my strategy yet. Let me explain my strategy and I will post the chart readings of the said period.:)
     
    narayan78 and avny like this.
  6. karthik_sri

    karthik_sri Well-Known Member

    Joined:
    Jul 20, 2007
    Messages:
    851
    Likes Received:
    1,969
    Trophy Points:
    93
    Location:
    Chennai
    Strategy

    We look for subsequent Two Green/White candle for Long & Two Red/Black candle for Short.

    Rule:

    1). The Second candle of the same color should not touch 50% of the previous candle.
    2). When the condition (1) is met we place buy or sell order at the high/low of the second candle.

    Target/Exit :

    In case of Buy : 50% from the 1st candle Low and 2nd Candle High (Low-High/2) from the Buy price
    In case of Sell : 50% from the 1st candle High and 2nd Candle Low (High-Low/2) from the Sell price

    Stop Loss

    In case of Buy: Target price difference less from the High price
    In case of Sell: Target price difference plus from the Low Price

    Applicability of Scrips: This strategy can be applied in all the Scrips, Futures, Options, Commodities. But better to avoid penny stocks/scrips

    Applicability of Time frame: Can be applied in EOD, Hourly & any Time frame

    The above Rules of Entry, Target & Exit will be confusing but I will explain through posting charts.

    Cheers
    Karthik
     
    sonai_81, amitrandive, kvram and 24 others like this.

  7. amitsh27

    amitsh27 Active Member

    Joined:
    Nov 23, 2011
    Messages:
    303
    Likes Received:
    94
    Trophy Points:
    28
    Yeah.....choose TCS today's chart as it moved in green & red....both sides...tks !
     
  8. rkkarnani

    rkkarnani Well-Known Member

    Joined:
    Sep 10, 2004
    Messages:
    4,580
    Likes Received:
    4,439
    Trophy Points:
    113
    In what Time Frame did you go through the Intraday Charts?
     
    Aarav11 likes this.
  9. karthik_sri

    karthik_sri Well-Known Member

    Joined:
    Jul 20, 2007
    Messages:
    851
    Likes Received:
    1,969
    Trophy Points:
    93
    Location:
    Chennai
    I have posted the chart of LT (Futures) scrip (17.09.2012). The time frame is set at 30min. The subsequent candle is circled and marked in Red. As a condition the second candle didnt touch the 50% level of 1st candle. We place buy order at high price of 2nd candle which is 1554.65 The target is marked in Green & SL in Red. By this the Risk Reward Ratio is 1:1

    The Lot size of LT is 375 and profit is Rs.4500/-:thumb:

    http://img203.imageshack.us/img203/9958/24wd.png

    Karthik
     
  10. karthik_sri

    karthik_sri Well-Known Member

    Joined:
    Jul 20, 2007
    Messages:
    851
    Likes Received:
    1,969
    Trophy Points:
    93
    Location:
    Chennai
    XUV-500 and Shantala like this.
Loading...

Share This Page