Candle Combo: The Ninja Signal

What is the Candle Combo?

Created by me  ThetradingNinja, I developed this pattern when I started to see it often on  specific time frames frequently. Its a continuation setup that consists of “Two candles” with the combination of the  Middle Keltner Channel.


Picture 1. $SPX 4hr Chart: 



This is an actual chart used in chat as our trade signal to go long $SPX with calls.

When does it occur?

This candle setup usually occurs after a downtrend or can be spotted in an uptrend. It happens either during or right before  crossing the Middle Keltner channel. 

Where can I spot it?

Mainly spotted on the 4 hour time frame. Also can be on shorter time frames like hourly and longer Daily and Weekly. Look for follow through.


Picture 2. $SPX 4hr Chart: 2/26


Screen Shot 2018-02-26 at 2.13.22 PM


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7 thoughts on “Candle Combo: The Ninja Signal

      1. Thank you. couple more questions:
        1. Curious to know why you use MA and not EMA? EMA gives more weight to recent prices so why SMA?
        2. If I understood your response, you use SMA,
        upper band: SMA * 1.5 (or 2)
        lower band: SMA * 2 (or 2.5) – i think you mad a mistake in “2/2.0”
        the middle band is your SMA itself. what period is that SMA? 30?

        Liked by 1 person

  1. ok. got it. interestingly, TOS uses SMA as you mentioned, whereas Questrade IQ Edge (which I’m using) uses EMA by default. it is configurable, though. thank you!

    Liked by 1 person

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