Two candle strategy

princy01

Well-Known Member
I added filter condition of 23.60% from the Buy level and vice versa in case of Sell level and slight change in the target level with 61.80% This is nothing but Fibo level. The stop loss remains the same as usual and no change to that. While testing this condition in at different levels felt that some times price meet our Buy or Sell price and hits SL without meeting the target. What surprised me is when the next candle price meets the level of 23.60% (which is our Buy or Sell price) it advances further to the extent of 61.80% level. Some cases it hits SL but such instances/occurances is very low. But the RR Ratio will now be 2:1

In the excel file I have mentioned for Two Green Candle & Two Red Candle and when such identical candle is spotted just update the High Low price of the 1st & 2nd candle and look for the Strategy Conditon. If Strategy Condition is "SATISFIED" place your order and if Strategy Condition is "FAILED" dont initiate any order and wait for another setup.

The Entry price, Exit Price & SL will be calculated automatically.

Thanks to Malunana for developing excel utility based on my initial setup.

Important Condition: If the condition is satisfied our entry (i.e Buy or Sell) price should meet within the next candle. If the entry price is not executed in the next candle, cancel the order and wait for next such setup. This condition applies to all the Time Frame that we choose.


https://www.dropbox.com/s/q30515b306fa3u7/Two Candle Strategy (with Filter).xlsx?m

Cheers
Karthik
" I added filter condition of 23.60% from the Buy level and vice versa in case of Sell level and slight change in the target level with 61.80% "



i am not so sure about this added filter , kindly explain with an example , also with this added filter what have been results in last year or so as you must have been using the system for long now ?

thanks
 
Last edited:
Good morning everyone.Anybody can explain 2 candle strategy with latest updates done.Also I found the 2 nd candle touch 50 percent of high minus low in all cases then no entry
 

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