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Tony's Two Candle trading system

  • #1
  • First Post: Edited Jun 4, 2009 11:38pm Jun 2, 2009 11:32pm | Edited Jun 4, 2009 11:38pm
Howdy Folks,

Just wanted to share a high probability trading system to you. Its very simple, just pull out a 1hour chart any currency.

Now simply wait for a bull or bear candle to form, after it closes bullish or bearish, ITS MOST LIKELY the next candle will form bull or bear candle...theres some easy pips for you.

Examples:

Bull candle at 8gmt, most likely 9gmt candle could be a bull candle too.
Bear candle at 11gmt, most likely 12gmt candle could be a bear too.

Entry Exit Rules:
Bull candle --- Stoploss at the low of the previous candle, target 10-20pips or the close of the next candle.
Bear candle --- Stoploss at the high of the previous candle, target 10-20pips or the close of the next candle.
No trade --- If next candle starts to form against the direction of the previous candle.

Note: The best bull or bear candles are ones that are one-sided or ones that have little or no wick. (strong bull/bear candle)

More info, template and filters on this post --- http://www.forexfactory.com/showpost...&postcount=112
Happy Pippin
Attached Image (click to enlarge)
Click to Enlarge Name: twocandlesystem.gif Size: 15 KB
prepare for worst & expect the best
  • #2
  • Jun 2, 2009 11:41pm Jun 2, 2009 11:41pm
hmmm cherry picked chart... lets see how you go in a ranging market
Grabbing the bull by the horns!
  • #3
  • Jun 2, 2009 11:56pm Jun 2, 2009 11:56pm
Quoting whitegoodman
hmmm cherry picked chart... lets see how you go in a ranging market
Its just a simple trading system and it matters not if its a ranging market or a trending one, because we aren't riding trends, we're just dealing with 2 candles to make some easy gains.

Simply wait for a bull candle and see if the next candle forms bullish, by say 5pips and you can enter for a 10-20pip target, stoploss at the low of the previous one.

If the candle is bull and the next one isn;t forming bullish, its a no trade.

Best times to trade are from european open to new york close
prepare for worst & expect the best
  • #4
  • Jun 3, 2009 12:02am Jun 3, 2009 12:02am
do you mean - first bull(bear)?
  • #5
  • Jun 3, 2009 12:04am Jun 3, 2009 12:04am
Quoting fxxx
do you mean - first bull(bear)?
yes, if first bull and second not bullish . no trade

& if first bull and second bullish by 5pip atleast. entry at market, target 10-20pip or close of second candle, stoploss at the low of first candle.
prepare for worst & expect the best
  • #6
  • Jun 3, 2009 12:08am Jun 3, 2009 12:08am
dear tony, i have read your thread,and I think your system is very simple.
-anyway how long have you been trying this system on real acc?
- when i should enter the position(wait until the second candle closed?
-is this system suitable for any TF?
thanks for the answer
  • #7
  • Jun 3, 2009 12:10am Jun 3, 2009 12:10am
T. could you.plese, put entry /exit, tp, sl on the chart - 'case those "prev/next" (to which one?) gonna be confusing : )))))
  • #8
  • Jun 3, 2009 12:15am Jun 3, 2009 12:15am
Quoting fxxx
T. could you.plese, put entry /exit, tp, sl on the chart - 'case those "prev/next" (to which one?) gonna be confusing : )))))
here you go myfriend.
Attached Image (click to enlarge)
Click to Enlarge Name: twocandlesystem2.gif Size: 15 KB
prepare for worst & expect the best
  • #9
  • Jun 3, 2009 12:19am Jun 3, 2009 12:19am
Quoting ronm7d
dear tony, i have read your thread,and I think your system is very simple.
-anyway how long have you been trying this system on real acc?
- when i should enter the position(wait until the second candle closed?
-is this system suitable for any TF?
thanks for the answer
yes i trade this live on 50lots, mostly only trading this on usdjpy since it has a less volatility and stoploss/spread than other pair.

I only recommend using this on 1hour chart and trading only from european to new york session, because we need a market that moves to profit and not a sleepy market with small candles.

In my broker fxdd, from 9:00 to 24:00 , thats 15 hours and 15 candles per day to trade.

This system is just pure price action, if buyers pushed the price up in the past hour, its more likely buyers will push the price up again on the next hour, vice versa for sellers.
prepare for worst & expect the best
  • #10
  • Jun 3, 2009 12:19am Jun 3, 2009 12:19am
Quoting tony_dtrader
yes, if first bull and second not bullish . no trade

& if first bull and second bullish by 5pip atleast. entry at market, target 10-20pip or close of second candle, stoploss at the low of first candle.
going with gap direction - very likely you will be within TP range even if next bar later turnes opposite ...
  • #11
  • Jun 3, 2009 12:22am Jun 3, 2009 12:22am
Quoting tony_dtrader
yes, if first bull and second not bullish . no trade

& if first bull and second bullish by 5pip atleast. entry at market,
Ok you mean enter about 5 pips from close of the previous bull or bear, that s it ? Thanks Tony

Luk
  • #12
  • Jun 3, 2009 12:27am Jun 3, 2009 12:27am
Quoting fxxx
going with gap direction - very likely you will be within TP range even if next bar later turnes opposite ...
if you want 99% win ratio, go with 10pip tp.
if you want 80% win ratio, go with 20pip tp.

anyways tp at close of second candle sometimes very rewarding, usually at start of London and new York sessions and news hours.
prepare for worst & expect the best
  • #13
  • Jun 3, 2009 12:30am Jun 3, 2009 12:30am
Quoting PipsRider
Ok you mean enter about 5 pips from close of the previous bull or bear, that s it ? Thanks Tony

Luk
Heres an indicator to help you with that , with alerts. Thanks to Cja.
Attached File(s)
File Type: mq4 Candle_Signal.mq4   7 KB | 6,999 downloads
prepare for worst & expect the best
  • #14
  • Jun 3, 2009 12:44am Jun 3, 2009 12:44am
Quoting tony_dtrader
yes i trade this live on 50lots, mostly only trading this on usdjpy since it has a less volatility and stoploss/spread than other pair.
I have some doubt
  • #15
  • Jun 3, 2009 12:51am Jun 3, 2009 12:51am
Quoting forexisfx
I have some doubt
Here's two trades i took yesterday in mid London session.

Another example of how price action works best always.
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: twocandlesystem3.gif Size: 17 KB
prepare for worst & expect the best
  • #16
  • Jun 3, 2009 12:56am Jun 3, 2009 12:56am
thx for the answer . anyway.must we enter position when the second candle just appear or wait for several minutes ?
-how long have you been using this system?
thanks for sharing mr tony
  • #17
  • Jun 3, 2009 1:07am Jun 3, 2009 1:07am
Quoting ronm7d
thx for the answer . anyway.must we enter position when the second candle just appear or wait for several minutes ?
-how long have you been using this system?
thanks for sharing mr tony
Wait for the second candle to go up by 5 pips at least. Here's a live trade Ive just taken for almost 20 pips again.
Attached Image (click to enlarge)
Click to Enlarge Name: twocandlesystem4.gif Size: 16 KB
prepare for worst & expect the best
  • #18
  • Jun 3, 2009 1:07am Jun 3, 2009 1:07am
Quoting tony_dtrader
Here's two trades i took yesterday in mid London session.

Another example of how price action works best always.
Live account USD ?
  • #19
  • Jun 3, 2009 1:16am Jun 3, 2009 1:16am
hi,
that is a very simply system. i notice that the candle before 1st candle is always the opposite direction.
i.e.
0th candle - bear candle
1st candle - bull candle
2nd candle- bull (5 pips) and then buy
close at the end of 2nd candle or 10/20 pips
stop loss 0th candle low

any one can make a EA to test it out?


happy trading
  • #20
  • Jun 3, 2009 1:17am Jun 3, 2009 1:17am
Quoting footy
hi,
that is a very simply system. i notice that the candle before 1st candle is always the opposite direction.
i.e.
0th candle - bear candle
1st candle - bull candle
2nd candle- bull (5 pips) and then buy
close at the end of 2nd candle or 10/20 pips
stop loss 0th candle low

any one can make a EA to test it out?


happy trading
u don't wanna see an EA for this becoz it will ruin the party.
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