Tony's Two Candle trading system

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I like this system, but does anyone know of a way to filter because there are many candles that turn the opposite type (bullish/bearish) after the previous one.

the best way to filter these trades is in a trend,plus also wait for the pullback but then again we are gearing away from the simplicity

hi tony, thanks for sharing this quite interesting price action strategy to us. i would like to ask you about one thing, how do we take entry? is that so simple by just waiting on price moving bull/bear at 5 pips and then open position? is that any filter/another rules applied? thanks

Thanks fxxx I love these indicators http://www.forexfactory.com/showthre...98#post2783298
Barry

this indi can be helpful but it does repaint....
so in backtest it looks perfect...............

in my practice the best trend`s indicator is CCI_50 (Supertrend). you also may use EMA_5 + EMA_8.
within the confines of Tonys system they work well
all the best signals after pullbacks to the indicators lines.
mean, the very first trend_color candle after pullback is a "signal candle". so may use stop orders to trade it

Hey tony, I think you have a very simple but effective system thanks very much for sharing it for everyone's benefit its very kind of you. Even so, I do not use it as per Instruction on the H1 . I use it on the H4, D1 and W1. Also my TP is much larger than 10. Basically I combined your Trading Style with pipEasy “Building an equity millipede” I highly recommend it for everyone to read. It will change the way you trade without Indicators
Thanks also to everyone for participating

Stumbled upon this thread and had a little go on a micro account and gained 48 pips!

How come the thread died? Seem like a good one to me.

Everyone blew their account or making too much money to bother posting anymore

I try the system. It works.
Wow. I'm so happy about it.
Thank you. Tony

Kjang, how exactly do you trade it?

Sorry to be a party pooper here guys but realistically the system will not work on the long term. 10-20 pip TP is too little when placing the stop on the other size of the previous candle as this is usually more than 10-20 pips.

I might be stating the obvious but if a system so basic could really generate consistent gains and grow an account indefinately, don't you think the banks and big traders would just use a simple EA to follow this very system and everyone would be stinking rich?

I'll get shot down for this no doubt but listen to me guys. Stop looking for an automatic follow the green light system. You need to actually use your brains to make pips in this business. Every trade is different and the market state is relevent to how you should go about it.

The system forum is 99% nonsense and 1% actual credible trading advice. But sadly the profitable traders need the forex world to be filled with garbage systems to fool the newbies and hopefuls into risking their capital on some basic mechanical system that looks good on back test, to provide liquidity for the people who acually know how the market works.

I have been there and done it all too, following amazing looking systems, making my own (dozens of them) and I was never profitable for more than a month or two until I realised it was time to delete all the garbage from my charts and follow price action. The M1 Stochastic is useful for getting a more precise entry when it's time to take a trade but most of everything else is just nonsense guys. Seriously. Give yourselves a fighting chance and stop looking for the holy grail or a magical system that will make money for you. Use the common sense to realise it does not exist. It can't exist. If it was that easy everyone would be doing it and the markets would cease to function.

Hello Guys...

I am looking for an EA which perform, buy @ the open of the Candle when the previous bar of the Candle is Bull or Vice Versa

Regards,
fxolive

Well. This is one example.

I saw 2 Bullish candle on Euro/USD chart. So, I placed a pending "buy stop" order (22101904) at the high of the second bullish candle.(1.4002) and Stop loss at previous candle's low, which is 1.3965. My target profit Only 10 pips because previous post mentioned that you will have 90% chance to hit your target. See Chart 1 for my trade setup.

I waited for almost 1 hour and check back my trade. Bingo! my trade was done and I made 10 pips profit. See Chart 2 for my trade history. The trade was trigger arround 2011.10.27 06:51 and done at 2011.10.27 06:53.

I tried the system last time on demo account but this time is my real account. My lot size was small (0.01) because I got insufficient fund in my account. I will try it out again some more times to gain more confidient before I increase my lot size.

Anyway. Thank you. Tony.

You still seem to be at the early part of your trading journey, in some way your right and in others your wrong

thumbs up for the PA S&R, study these well as they will never let you down, even when looking for the automated systems they will guide you

what your missing is that you can have a simple system like this that will work, this is PA based - no indicators needed and it can and will win - just don't take every trade, study PA S&R and this system will win.

can automated systems work and generate 1000% profit in a month - look to trading comps like MIG banks F1 challange - they can and do make huge sums of money - but most will never be able to afford to buy them, when they can they no longer need to, because they have found there own way and enjoy the trading much more.

most sytems can be traded, but more often than not people let it down, by not following the rules or second guessing the market - find something that suits our persnality and study hard and master it - remember exits good or bad are the key.

would be good to see Tony back, but the arguments and lazy traders get to you in the end i guess.

best of pips all

This system work great. I,m use 30- 50 pips tp on daily and 10-20 pips on h4 with multimeter confirmation. Thank you for this post

I do not understand, the entries in the EURJPY, CHFJPY, AUDJPY and GBPJPY not follow the rules

I live in spain, thank Tony, fxkill no rules!

Nice work what stop loss are you using and what of the indicators need to be in confirmation or is it all the indicators in the multimeter?

This style is basically the same as what i use except I use on daily chart and success ratio is at 80% or a little higher, however i use opposing candle to get out and breakeven at 40 pips.. Often get 150 to 300 pip trades and so thought i would share..

You cannot use robots or ea's with this technique, because with this technique you need common sense as well and a robot does not have it.. The two candle entry technique to work well one has to see candle movement down first for bull entry and move up for bear entry..

The waves of the market.. The market moves in waves, look at the daily, 4 to 5 candles down, up move, 4 to 5 candles up then down move.. Assess the wave even in trending markets there is waves.. Then use the two candle to get in.. Logic is needed..

One cannot just enter randomly on second candle anywhere like an ea.. Plus look at support and resistance for even more success..

My friend there is no such thing as a successful robot, they just cant calculate logic like what Tony says on first or second page.. And by the way tony, thanks for sharing your knowledge, I do not trade the 1 hour but will consider checking it out as well..