Candle 2 Closure

Candle 2 Closure codifies a failed-expansion reversal from the TTrades Fractal framework into a four-candle sequence any chart can run. Price trades outside the previous candle's range but cannot hold the break, closing back inside it: kin to the classic two-bar reversal, but demanding confirmation before a setup completes. Key levels, equilibrium zones, and real-time alerts wrap the pattern into a structured workflow for discretionary and systematic traders alike.

How to Trade the Candle 2 Closure?

• Candle 1 (Context): price trades into a significant area: a key high, low, or range extreme built over many bars.
• Candle 2 (Reversal): trades outside Candle 1's range but closes back inside it; the failed breakout is the signal's core.
• Candle 3 (Expansion): closes outside Candle 2's range in the reversal's direction, confirming momentum behind the turn.
• Candle 4 (Continuation): follow-through that completes the pattern and reinforces the directional bias.

In high-quality setups, subsequent highs or lows often form inside the equilibrium zones drawn from Candles 2 and 3, the areas where price found acceptance before expanding. Alerts fire as Candle 2 and Candle 3 conditions confirm, so the sequence can be traded without staring at the chart.

Candle 2 Closure Settings

• Candle 2 (Reversal): toggle reversal detection.
• Candle 3 (Expansion): toggle expansion confirmation.
• Reversals Filter: only accept reversals at the highest or lowest point of the last N bars. Longer lookbacks drop minor turns.
• Wick Threshold %: when a wick exceeds this share of the bar's range, the equilibrium zone is computed from the wick alone.
• Style & Alerts: bullish and bearish colors, transparency, key level and zone toggles, plus separate alert switches for Candle 2 and Candle 3.

Frequently Asked Questions

How does this differ from a swing failure pattern?

Is it usable by beginners?

How do I get Candle 2 Closure?