MDMETHODIK · 02/05
The Candle Rule: Entry Timing
Timing decides whether a good setup becomes a good trade. The candle rule defines exactly when an entry counts.
The Rule
Three red candles in a row mark a low in the third candle. The fourth candle must close green and take out the high of the third.
When the Thesis Dies
If the fourth candle closes red or below the level, the setup is invalid. No second-guessing, only the rule.
Why It Works
The rule buys after exhausted selling pressure and demands immediate confirmation from buyers.
EXAMPLE
Candles 1-3 red → low at No. 3. No. 4 green, high above No. 3 → entry.
FAQ
What if there are only two red candles?
No setup. The rule requires three, patience is part of the method.
Does the rule work in every market?
It applies to the signals of the V2 system, regardless of the coin.
Where is the stop?
Behind the low of the third candle, where the thesis gets falsified.