The 2-Candle Formula I Use on Binance
Everyone looks at 1 candle. I look at 2 candles to understand the 3rd one.
It is very simple. You only need 3 things:
1. Candle 1 Opening
This is your base level. Where the fight started.
2. Candle 2 Closing
This shows who won the fight. Buyers or Sellers.
3. High / Low Break (The Crack)
This is the confirmation.
The Formula:
BULLISH Case:
If Candle 2 closes ABOVE Candle 1's Open
AND breaks Candle 1's High
= The next candle shows bullish momentum.
I look for Buy setups here.
BEARISH Case:
If Candle 2 closes BELOW Candle 1's Open
AND breaks Candle 1's Low
= The next candle shows bearish momentum.
I look for Sell setups here.
No Break = No Trade. This rule saves me.
I use this on 15m and 1H timeframe.
It works best on BTC and XAUUSD (GOLD).
This is not financial advice. This is just price action education. Always use stop loss.
Save this post. It will help you.
Follow for more: @Abd FX
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