The Secret Behind Candles: A Simple Trading Strategy
When it comes to trading, simplicity often works best. This article introduces two easy-to-understand candle patterns that can improve your trading results. These patterns focus on how candles behave in relation to the highs, lows, and bodies of previous candles. Here’s the breakdown:
The Two Candle Patterns
1. Pattern One: Closing Within the Body
A candle takes the high or low of the previous candle but closes within its body.
This suggests that the market is preparing for a move (expansion) in the upcoming candles.
The key is that the closing price holds the relevant volume information.
2. Pattern Two: Breaking and Closing Above or Below
A candle breaks the low or high of the previous candle and closes above or below it.
This indicates the market might continue moving in the same direction (continuation).
Why Focus on These Patterns?
The closing position of the candle—whether within the body or above/below it—provides clues about market volume and direction. By identifying these patterns on different timeframes, traders can catch potential moves before they happen.
Real-Life Application
These patterns work on various timeframes (1-hour, 4-hour, daily, etc.).
Start by identifying candles that meet the criteria on your charts.
Focus only on these two setups to avoid overcomplicating your strategy.
A Straightforward Approach
The beauty of this method lies in its simplicity. Instead of trying to analyze every detail on the chart, you can focus on just two types of candles. This "one candle theory" makes trading more manageable, especially for beginners.
Ready to Dive Deeper?
The author of this method offers mentorship for traders who want to take their skills to the next level. They also promise to reveal more secrets and variations of this strategy in future content.
By mastering these two candle patterns, you’ll gain a clearer understanding of market moves and make more confident trading decisions. Keep practicing, and you’ll see the results in no time!
