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    2 Candle - Price Action

    Uploaded by

    shruti
    Price action patterns with 2 candles

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    © All Rights Reserved
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    2 Candle - Price Action

    Uploaded by

    shruti
    190 views7 pages
    Price action patterns with 2 candles

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    © © All Rights Reserved

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    PDF or read online from Scribd

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    Price action patterns with 2 candles

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Download as pdf
    190 views7 pages

    2 Candle - Price Action

    Uploaded by

    shruti
    Price action patterns with 2 candles

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Download as pdf
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    PRICE ACTION TECHNIQUE Find two candles with exactly similar Highs / Lows LL The above candles may be in any time frame. The sequence of candles must be in the above order for the strategy to work. The two tops act as double tops. As seen in figure (blue candle) prices reached the top but could not sustain there, hence it comes down abit & closes there. In next candle, prices open above close of last candle but could not make new high & reverses to close low. This indicates resistance at High of candles & hence bearish view for short term. When two bars having similar TOP's are formed in an uptrend, it indicates a change in trend & a reversal or small correction is seen. ll ie When two similar bottoms are made in an downtrend, it indicates that a support has been established & hence price start moving in opposite direction. A second candle when formed with exactly equal High, it acts as a Inside bar. When this setup is formed after a uptrend, it usually signals end of uptrend / retracement coming. + When a DOJI candle is formed in an uptrend with same HIGH as last candle it is almost sure that a TOP has been made & prices will retrace or the trend may change. Stoploss Management is vital for this strategy. For longs we keep Stop few point below Low of both candles, for shorts keep Stop few point above High among both candles. Long Entry Trade| U Stop__ This strategy is not advisable using two of the following candlestick. +t 1 ate Inverted Long legged ji Hammer Doji Hammer candles These candles are formed near to important support / resistances, hence may increase failure rates. Kindly backtest & papertrade this strategy before you go for real trades. -Rajenvyas A a Equal Bottoms Go ADANIENT (Hourly) ADANIENT - Hourly 17/12/2014 13:1 4:59 Open 439.7, Hi 439.9, Lo 439.1, Close 439.75 (0.0%) =iaiClose, ra Exaetly equal Jows intraday Dec 127 2:00 Dec 18 Dec 161 2:00 Dec 17°12:00

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