What is a 1-2-3 Candle?
Quick answerThree daily candles: candle 1 red, candle 2 a bigger green candle with the highest high of the three, candle 3 red. Over candle 2's high at 3:45 PM Eastern is the buy, called before the close so you can get in.
The details
The three candles
- Candle 1: a red candle.
- Candle 2: a green candle with a bigger body than both of its neighbours, and the highest high of the three.
- Candle 3: a red candle again, its high at or under candle 2's.
On our charts they glow teal, purple and pink, with a small 1, 2 and 3 over them.
The trigger
Candle 2's high is the trigger, drawn as a dashed purple line. When a stock is over it at 3:45 PM Eastern, the call goes out, marked 1-2-3 BUY, and the price then is the entry: you buy before the 4:00 close (when alerts come). One that crosses in the last minutes is a buy at the next morning's open.
The trade
Every call comes with three ways out: the stop 10% under the entry, the target 5% over it, and out at the close on day 30 (the exits). Each call also comes as one options trade (the options trade).
A new 1-2-3 counts only 10 candles after the last one on the same stock, and a newer pattern moves the trigger to its own candle 2.
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