Combining Support and Resistance with Two-Candle Price Action

Summary

This article presents a discretionary trade-entry framework that combines subjective support, resistance, and midpoint reference levels with three two-candle patterns. The patterns describe wick rejection, a tweezer-like pair with similar candle bodies, and a second candle that closes beyond the first. The examples use one-minute candles and place a market order at the opening of the next candle when a pattern forms near a reference level. The author also advises filtering setups when the prospective entry is too far from its reference.

MQL4 examples show how to read candle prices, check reference-level conditions, and attach stop-loss and take-profit levels. Illustrations include a reported EURUSD trade example, but the text supplies no systematic backtest, sample size, or evidence that the setups have a reliable win rate. Reference selection is explicitly subjective, and the code is presented as building blocks rather than a complete Expert Advisor. The tight timeframe and stops also make execution conditions relevant to practical results.

Key ideas

• Mark candidate support, resistance, and midpoint prices as areas for monitoring price action.
• Look for the described two-candle patterns near those reference levels before considering an entry.
• The framework enters at the opening of the candle after the pattern and uses market orders.
• Filter out patterns whose entry price is too far from the relevant reference level.
• The examples do not establish robust performance, and reference levels require subjective choices.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.