2 Candle Theory TC 2021.pdf

candle

1. Sivakumar
Jayachandran
2021

2. Disclaimer
•I’m a NISM Certified Professional for Equity Derivatives. I am
NOT a SEBI registered advisor.Any Information on this
Presentation is for education purpose only and please do
not trade solely based on this information.
•Options trading have large potential rewards, but also large
potential risk. You must be aware of the risks and be willing
to accept them in order to trade in markets.
•The past performance of any trading system or
methodology is not necessarily indicative of future results,
So Please consult your financial advisor before taking any
decision

3. What’s 2 Candle Theory
•As A Scalper, Our Intention Is To Find One Good Strategy &
Keep Refining It
•2 Candle Theory Is All About Finding Breakout Trades In
Index Futures & Index Options
•Scalper Needs One Or Two Good Trades In A Day & That Sets
You Up For Consistent Wins In The Battlefield
•Scalper’s Job Is To Win Battles & Not The War
•Now I Want All Of You To Consider Yourself As Kings

4. Let’s Play A Kingdom Game –Are You Ready
For The Battle
•You Are The King & Your Indicators Are Your
Soldiers
•King Need To Know Which Indicators /
Soldiers Need To Be Used On Battlefield To
Defend The Kingdom/Capital
•King Has To Play With His Resources Very
Meticulously In Battlefield
•So, What Are The Indicators & How Each Of
Those Soldiers Can Help You Win The Battle

5. Indicators = Soldiers on 3/5 Min TF
Queen = Open Interest
Weapons = Volume
Territory = RSI Candles -Battle

6. Indicators = Soldiers on 3/5 Min TF
Pawn = VWMA (20)
Knight = ST ( 10, 2)
Bishop = Parabolic SAR
(0.02, 0.02, 0.2)
Rook = VWAP

7. How To Initiate Long Trade In Index
Future/ Buy Call Options –3/5 Min TF
▪If The Index Futures Trades Above The VWAP (Rook), Following
Parameters To Be Checked For 2 Candle Theory
▪Whether Open Interest (Queen) Shows Long Built Up/ Short Covering
▪RSI (Territory) Trades Above 50 & Between 50-75/80
▪Volume (Weapons) Of 2 Consecutive Bars Is Above 50 K for BN & 125 K
For Nifty
▪All Your Soldiers (Bishop, Pawn, Knight & Rook) Below The Candles
▪Then As A King Deploy Your Resources In 3
rd
Candle, With 1
st
Candle
Low As SL
▪If 1
st
Candle Low Is Hit, Then Your Fort Is Breached, Time To Pack Off
▪Long Trade Can Be Initiated In BN/Nifty Futures Or Index Call Options
Only When Above Parameters Fulfilled

8. How To Initiate Short Trade In Index
Future/ Buy Put Options –3/5 Min TF
▪If The Index Futures Trades Below The VWAP (Rook), Following
Parameters To Be Checked For 2 Candle Theory
▪Whether Open Interest (Queen)Shows Short Built Up/ Long
Unwinding
▪RSI (Territory) Trades Below 40 & Between 40-25/20
▪Volume (Weapons) Of 2 Consecutive Bars Is Above 50 K for BN & 125
K For Nifty
▪All Your Soldiers (Bishop, Pawn, Knight & Rook) Above The Candles
▪Then As A King Deploy Your Resources In 3
rd
Candle, With 1
st
Candle
High As SL
▪If 1
st
Candle High Is Hit, Then Your Fort Is Breached, Time To Pack Off
▪Short Trade Can Be Initiated In BN/Nifty Futures Or Index Put Options
Only When Above Parameters Fulfilled

9. Take Cues From Global Allies & Partners
▪Biggest Problem In Market Is You’re Waging A Battle Against An
Unknown Enemy
▪Use Foreign Allies To Your Advantage –
▪Dow Futures –Watch The Previous Day Close & Live Futures Trade
▪Asian Indices –Nikkei, Shanghai & HangSeng
▪European Indices –DAX, CAC & FTSE
▪India VIX
▪Crude
▪US Dollar Index
▪Bond Yields & USD/INR
▪Events & News

10. Perfect Trade Setup

11. Perfect Trade Setup

12. CrossOver

13. Thank You
I would like to take this opportunity to thank DJ, Rekha & All
Participants & Fellow Speakers.
If you wish to hear more on Options Scalping Techniques, please
reach out to me
Twitter -@justsiva123
Telegram Channel –Https://t.me/OptionsScalping
[email protected]
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