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Two candle strategy

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  #1  
Old 30th September 2013, 05:37 PM
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Default Two candle strategy

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



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  #2  
Old 30th September 2013, 05:38 PM
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Default Re: Two candle strategy

Quote:
Originally Posted by karthik_sri View Post
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
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  #3  
Old 30th September 2013, 05:42 PM
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Default Re: Two candle strategy

Quote:
Originally Posted by karthik_sri View Post
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
Welcome Sirji, I am one of the biggest fan of your all strategy.. Will be watching closely
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  #4  
Old 30th September 2013, 07:52 PM
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Default Re: Two candle strategy

Quote:
Originally Posted by karthik_sri View Post
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
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?
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  #5  
Old 30th September 2013, 08:02 PM
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Default Re: Two candle strategy

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Originally Posted by jamit_05 View Post
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?
Bro I have not posted my strategy yet. Let me explain my strategy and I will post the chart readings of the said period.
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  #6  
Old 30th September 2013, 08:22 PM
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Default Re: Two candle strategy

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
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  #7  
Old 30th September 2013, 08:29 PM
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Default Re: Two candle strategy

Yeah.....choose TCS today's chart as it moved in green & red....both sides...tks !
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  #8  
Old 30th September 2013, 09:38 PM
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Default Re: Two candle strategy

Quote:
Originally Posted by Aarav11 View Post
Going through some of today's intraday charts and to my surprise such setup do not occur very often. In my view that is a good thing.
In what Time Frame did you go through the Intraday Charts?
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  #9  
Old 30th September 2013, 09:40 PM
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Default Re: Two candle strategy

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/-

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

Karthik
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  #10  
Old 30th September 2013, 09:52 PM
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Default Re: Two candle strategy

Another chart of LT Futures on 14.09.12 on 30min time frame

http://i.imgur.com/m3A75ZR.png

Profit Rs.3375/-


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