Two candle strategy
- Thread starter karthik_sri
- Start date
I will try to explain using DishTv futures EOD chart.
Date High Low Diff
30th Sep - 51.7 50.05 1.65
50% of 30th Sep range is 0.825
1st Sep 52.7 50.75
So TO calculate whether 1st sep candle had touched less that 50% do below calculation
30th Sep High - 1st Sep Low
51.7 - 50.75 = 0.95 which is greater than 0.825 so 1st Sep candle is touching more than 50% of 30th Sep candle.
It will not qualify.
Date High Low Diff
30th Sep - 51.7 50.05 1.65
50% of 30th Sep range is 0.825
1st Sep 52.7 50.75
So TO calculate whether 1st sep candle had touched less that 50% do below calculation
30th Sep High - 1st Sep Low
51.7 - 50.75 = 0.95 which is greater than 0.825 so 1st Sep candle is touching more than 50% of 30th Sep candle.
It will not qualify.
There are no secretes 
All the information is given in the first few posts by karthik
Still seems many are confused about the rules . . . don't know why . . . rules seem to be simple enough to me
The setup involves having 2 consecutive bars in same directions
Setup For Long Trade
1. We need 2 bars such that both are up bars i.e. CLose > Open on both.
2. The Low of the second bar is more than (above) 50% or 1/2 of the First bar.
3. Calculate the range made together by both these bars i.e. (High of bar2 - Low of bar1)
4. Calculate 1/2 or 50% of this range and lets call it 'R'.
The above completes the Long Setup . . . once this condition is met be prepared for taking a long entry . . .
Long Entry
Enter Long on the next bar/candle if the Price goes above the High made by second bar in the long setup described above.
Target for Long
Target for the trade is entry price plus R (i.e High of the second bar + R)
Stop Loss for Long
Stop loss for the trade is entry price minus R (i.e High of the second bar - R)
Happy
All the information is given in the first few posts by karthik
Still seems many are confused about the rules . . . don't know why . . . rules seem to be simple enough to me
The setup involves having 2 consecutive bars in same directions
Setup For Long Trade
1. We need 2 bars such that both are up bars i.e. CLose > Open on both.
2. The Low of the second bar is more than (above) 50% or 1/2 of the First bar.
3. Calculate the range made together by both these bars i.e. (High of bar2 - Low of bar1)
4. Calculate 1/2 or 50% of this range and lets call it 'R'.
The above completes the Long Setup . . . once this condition is met be prepared for taking a long entry . . .
Long Entry
Enter Long on the next bar/candle if the Price goes above the High made by second bar in the long setup described above.
Target for Long
Target for the trade is entry price plus R (i.e High of the second bar + R)
Stop Loss for Long
Stop loss for the trade is entry price minus R (i.e High of the second bar - R)
Happy
There are no secretes
All the information is given in the first few posts by karthik
Still seems many are confused about the rules . . . don't know why . . . rules seem to be simple enough to me
The setup involves having 2 consecutive bars in same directions
Setup For Long Trade
1. We need 2 bars such that both are up bars i.e. CLose > Open on both.
2. The Low of the second bar is more than 50% or 1/2 of the First bar.
3. Calculate the range made together by both these bars i.e. (High of bar2 - Low of bar1)
4. Calculate 1/2 or 50% of this range and lets call it 'R'.
The above completes the Long Setup . . . once this condition is met be prepared for taking a long entry . . .
Long Entry
Enter Long on the next bar/candle if the Price goes above the High made by second bar in the long setup described above.
Target for Long
Target for the trade is entry price plus R (i.e High of the second bar + R)
Stop Loss for Long
Stop loss for the trade is entry price minus R (i.e High of the second bar - R)
Happy
All the information is given in the first few posts by karthik
Still seems many are confused about the rules . . . don't know why . . . rules seem to be simple enough to me
The setup involves having 2 consecutive bars in same directions
Setup For Long Trade
1. We need 2 bars such that both are up bars i.e. CLose > Open on both.
2. The Low of the second bar is more than 50% or 1/2 of the First bar.
3. Calculate the range made together by both these bars i.e. (High of bar2 - Low of bar1)
4. Calculate 1/2 or 50% of this range and lets call it 'R'.
The above completes the Long Setup . . . once this condition is met be prepared for taking a long entry . . .
Long Entry
Enter Long on the next bar/candle if the Price goes above the High made by second bar in the long setup described above.
Target for Long
Target for the trade is entry price plus R (i.e High of the second bar + R)
Stop Loss for Long
Stop loss for the trade is entry price minus R (i.e High of the second bar - R)
Happy
Last edited:
![2013-10-03 10_26_18-AmiBroker - [LT13OCTFUT - - 5-minute].png](/community/data/attachments/5/5158-76c9cd2880ac8a51695326a1008ac5fd.jpg)
There are no secretes
All the information is given in the first few posts by karthik
Still seems many are confused about the rules . . . don't know why . . . rules seem to be simple enough to me
The setup involves having 2 consecutive bars in same directions
Setup For Long Trade
1. We need 2 bars such that both are up bars i.e. CLose > Open on both.
2. The Low of the second bar is more than (above) 50% or 1/2 of the First bar.
3. Calculate the range made together by both these bars i.e. (High of bar2 - Low of bar1)
4. Calculate 1/2 or 50% of this range and lets call it 'R'.
The above completes the Long Setup . . . once this condition is met be prepared for taking a long entry . . .
Long Entry
Enter Long on the next bar/candle if the Price goes above the High made by second bar in the long setup described above.
Target for Long
Target for the trade is entry price plus R (i.e High of the second bar + R)
Stop Loss for Long
Stop loss for the trade is entry price minus R (i.e High of the second bar - R)
Happy
All the information is given in the first few posts by karthik
Still seems many are confused about the rules . . . don't know why . . . rules seem to be simple enough to me
The setup involves having 2 consecutive bars in same directions
Setup For Long Trade
1. We need 2 bars such that both are up bars i.e. CLose > Open on both.
2. The Low of the second bar is more than (above) 50% or 1/2 of the First bar.
3. Calculate the range made together by both these bars i.e. (High of bar2 - Low of bar1)
4. Calculate 1/2 or 50% of this range and lets call it 'R'.
The above completes the Long Setup . . . once this condition is met be prepared for taking a long entry . . .
Long Entry
Enter Long on the next bar/candle if the Price goes above the High made by second bar in the long setup described above.
Target for Long
Target for the trade is entry price plus R (i.e High of the second bar + R)
Stop Loss for Long
Stop loss for the trade is entry price minus R (i.e High of the second bar - R)
Happy
I will post a chart with all these in detail for better understanding. Might be I have not communicated in a right way!
Karthik
Thank you Singh...
I will post a chart with all these in detail for better understanding. Might be I have not communicated in a right way!
Karthik
I will post a chart with all these in detail for better understanding. Might be I have not communicated in a right way!
Karthik
For me the criteria for clear communication is if it can be coded into an AFL (taking only about trading related terms
, which was easily possible with your first few posts so its clear enf for me.
Maybe the problem is that the rules are too simple
and the minds usually looking for complex things/stuff . . .
Cheers
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