Two candle strategy
- Thread starter karthik_sri
- Start date
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
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
Thank you Karthik_Sri. In my Excel sheet uploaded earlier, I kept a filter of .05. This may be ok for EOD, but the filter suggested by you is very much needed for Intra Day. SL hits may come down largely. Another thing I noticed, while using your strategy, SL hits are more when range of candle2 is very much higher than that of candle1. You may analyse this fact and if necessary, you may suggest additional filter or qualification criteria. While Excel Sheet uploaded by you is very simple, but we could use the same for only one scrip at a time. In order to facilitate trades in more than 1 scrip at a time, I have added another sheet in your Excel file. I have also added a column for Time Frame, which may be useful for traders watching or trading in one scrip in different time frames. Strategy and filter are same as per your prescription. This modified Excel Sheet was uploaded in drop box. Visit https://www.dropbox.com/s/qetlr78o3szr5r2/Two Candle Strategy (with Filter)IntraDay.xlsx for downloading this file
hello sir,in highlighted second trade, the trade did not trigger during third candle.
As per notes in post #43 and 44, we have to enter immendiately on third candle.If trade did not get execute on third cadle , we have to cancel order.
Here in this case, trade triggered in 4th candle.
Please clarify.
Last edited:
In fact, filter suggested by Karthik has been added for Intraday. I am waiting for clarification from Karthik, whether same filter is applicable for EOD. It would be excellent, if an Excel file getting live intraday data. I am trying to include time of trade in my Intraday watchlist. If it works, then watchlist could be linked to Excel
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