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 2 Candle Theory  Options Strategies
2 Candle Theory  Options Strategies
A scalping strategy for index futures & options →
Hey there!
Today we’ll discuss the 2candle theory, a scalping strategy for F&O.
The 2Candle Theory
The 2candle theory is about finding breakout trades in index futures and index options. To take a trade, you need to find 2 consecutive candles, each having volumes:
Greater than 50K, for BankNifty or
Greater than 125K, for Nifty
According to the theory, you should take a position at the 3rd candle, and aim for a profit of 100150 points. Under the right conditions, you should reach your target within 1520 minutes.
A stop loss can be placed at the low or high of the first candle, depending on whether it’s a buy or sell trade.
Get confirmations from indicators and open interest
A good way to strengthen your trades is to look for the following signs of confirmation along with the 2 candles:
For a Long Trade
 For a Short Trade

We’ve covered more about the above indicators here.
Note that for a successful trade, you should consider other factors and data points in addition to the ones mentioned above.
Combine multiple indicators for a winning scalping strategy ⚡️
Learn to interpret different indicators and data points to devise a winning scalping strategy in Mr. Sivakumar Jayachandran’s Options Scalping Strategy Course. Get the course for just ₹999!
Stay financially fit,
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