2018issue C129
Two-bar body expansion as a momentum breakout construction
A two-bar momentum pair is consecutive up-close candles in an existing uptrend whose second body is at least twice the height of the first. The trigger sits 0.50 above the high of the second candle, and only pairs judged likely to attract new buying above that entry are taken.
- A two-bar momentum pair is two consecutive up-close candles inside an already identified uptrend and serves as the visual seed of the setup.
- Second-bar body expansion requires the second candle body to be at least twice the height of the first and is treated as evidence that buyers were more aggressive on the second session.
- The offset breakout entry places a trigger 0.50 above the high of the second candle rather than inside the pattern.
- A selective breakout takes only those pairs judged likely to attract new buying above the intended entry.
The two-bar momentum pair
A two-candle momentum construction can be defined as consecutive up-close candles in an uptrend whose second body is at least twice the height of the first. That pair is the two-bar momentum pair, the visual seed of the setup.
The pair is sought only on charts already identified as being in an uptrend. Candlesticks are used as a map for locating pivots and breakouts, with the two-bar expansion serving as the concrete pattern filter.
DCI daily closes, June–September 2018
Readings are approximate to about 0.2 dollars from a 0.50-spaced price axis. The source’s trigger sits 0.50 above the second bar’s high; that offset is not drawn here.
Second-bar body expansion
Second-bar body expansion is the size rule: the second candle body is at least twice the height of the first candle body. A larger second body is treated as evidence that buyers were more aggressive on the second session than on the first.
Offset entry and selectivity
The associated entry rule is an offset breakout entry. The trigger is placed 0.50 above the high of the second candle rather than inside the pattern.
False-breakout control is framed as selectivity. A selective breakout takes only pairs judged likely to attract new buying above the paid entry.
Post-pattern range expansion
After the pair prints, a widening day-after-day trading range is described as an early warning of increasing directional volatility and added buying pressure. That session-to-session widening is post-pattern range expansion.
All readings on this track · 51 readings
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