Two candle strategy

U

ulhas_zambare123

New Member
#41
#41
karthik_sri said:
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
Click to expand...

1 ) what we will do if order will not trigger in next immigate bar ???
2) still we will keep the order or we will cancel order ???
3) do we need bodied bar only or doji and doji + bodied bar such combination ???
 
karthik_sri

karthik_sri

Well-Known Member
#42
#42
Purushotham said:
Dear karthik Sri
From the above chart, sell trigger candle is not the next candle of the two candles..... Please explain....

I am thinking that we will take buy/sell in the next candle only other wise we will close the setup and look for the next setup.:(:(
Click to expand...
Dear Purushotham,
You are exactly right. If the buy/sell is not triggered in the next candle we will close the setup and look for the next setup.

I have to put these conditions in my main page. Will post this condition also. Thanks...My slipup:p
 
karthik_sri

karthik_sri

Well-Known Member
#43
#43
ulhas_zambare123 said:
1 ) what we will do if order will not trigger in next immigate bar ???
2) still we will keep the order or we will cancel order ???
3) do we need bodied bar only or doji and doji + bodied bar such combination ???
Click to expand...
The answer to your queries is given point by point

1). If Buy or Sell not trigerred in the immediate candle we close the setup and wait for another setup to form
2). Cancel the order and wait for another setup to form
3). Any such combination. Close should be > open in case of Bull and close should be < open in case of Bear. But the subsequent candle 50% level is very important!
 
karthik_sri

karthik_sri

Well-Known Member
#44
#44
Vertigo_1985 said:
i know a lot of filters would be needed but he hasn't mentioned any yet..maybe he can now...
Click to expand...
There are no lot filters and only two...

1). To make the setup valid the second candle should not touch the 50% level of the first candle
2). If the setup is made the Buy/Sell should fullfill in the next candle time frame else cancel the order and wait for another such setup to form

That's it!!!
 
anup

anup

Well-Known Member
#48
#48
Karthik, A basic question : As you have told that 2 candle strategy can be tried on any frame. Can you suggest which would be the ideal time frame (5 mins,15 mins, 30 mins , 60 mins or 1 day)..
 
karthik_sri

karthik_sri

Well-Known Member
#50
#50
anup said:
Karthik, A basic question : As you have told that 2 candle strategy can be tried on any frame. Can you suggest which would be the ideal time frame (5 mins,15 mins, 30 mins , 60 mins or 1 day)..
Click to expand...
The shorter time frame will give you profit & risk less vice versa in longer time frame. But in shorter time period u will get much opportunities but gauging the 50% level and placing the order within the prescribed time is the question as in 5 min time frame u will have to work out all these.

Suggest you try with 10min. But ideal is 15min where the profit & loss is decent.
 
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