Two bar Price action trading strategy.

 Price action trading strategy

What is two bar 

A two bar candlestick pattern is a price action pattern that occurs when two candles form on the chart with the same open and close price. This can be seen as a sign of indecision or a lack of conviction in the market, and can indicate that a trend reversal or breakout may be imminent. Here is a basic trading strategy for using two bar candlestick patterns:

Two bar trading strategy

1. Look for a two bar candlestick pattern to form on the chart. This can be on any time frame, but it is usually most effective on higher time frames like the daily or weekly chart.

2. Confirm the pattern by looking at the surrounding price action. The open and close of the two candles should be the same.

3. Look for a breakout in the direction of the trend. If the market is in an uptrend, look for a breakout above the high of the two bar pattern. If the market is in a downtrend, look for a breakout below the low of the two bar pattern.

4. Place a stop loss order a few pips beyond the opposite end of the two bar pattern. For example, if you are buying, your stop loss should be a few pips below the low of the two bar pattern.

5. Take profit at a predetermined level, or use a trailing stop to capture profits as the market moves in your favor.

It is important to remember that no trading strategy is foolproof, and two bar candlestick patterns do not always lead to successful trades. It is always a good idea to use risk management techniques like stop loss orders to protect against potential losses.