DislikedDid he ever give this thing an official name? I'm not talking about the classical DBHLC/DBLHC, although he definitely payed attention to those as well. This one was sort of a subset of those but he gives visual examples of this particular type all over the thread and keeps calling it a DBHLC/DBLHC, but it's really his own personal adaption. The first candle in the setup is a larger candle showing a little momentum followed by a second candle that's smaller, which has an equal or higher low and a higher close (around the halfway point of the first...Ignored
That signal was used a lot in the J16 trading and that is where the diagram I have is from , But evne the defintion they give doesn't match the Imge they posted on the JPG,
It is a very classic widelly used entry . The IB or Harami . then the Engulfing the engulfing is a better signal but would have a larger stop as it was rejected further.
The first system I ever learned looked just for IB's for entry. They are also called traintracks or tweezers which are mentioned in EO's thread. Basiclly the following candle gets no higher or lower then rejection sets in. IF you combine both candles you will get a pin formation of some sort. The bigger the wick and if the body chances color the better.
Good Trading To All ; Ken Lee