1510 3020 Black Candle Formation

1510 / 3020 Black Candle Formation

SuperAreas.com Trading Tool for Buy Stop and Sell Stop Calculations

Understanding Stop Orders in Futures Trading

BUY STOP Orders

What it is: A Buy Stop order is placed ABOVE the current market price.

When it triggers: When the market price rises to your specified level.

Position taken: You will be going LONG (buying) futures contracts.

Use case: Used when you expect the price to break out higher and continue the uptrend.

SELL STOP Orders

What it is: A Sell Stop order is placed BELOW the current market price.

When it triggers: When the market price falls to your specified level.

Position taken: You will be going SHORT (selling) futures contracts.

Use case: Used when you expect the price to break out lower and continue the downtrend.

Important: Both Buy Stop and Sell Stop orders are trend-following strategies. You are entering positions in the direction of the current trend, not against it. The black candle formation offset helps you place these orders at optimal levels within the trend structure.

Risk Management Guidelines

1510 Chart Recommendations

Take Profit: 4 ticks (recommended)

Stop Loss: 19 ticks (next black candle formation)

Risk/Reward: 1:4.75 ratio

3020 Chart Recommendations

Take Profit: 8 ticks (recommended)

Stop Loss: 34 ticks (next black candle formation)

Risk/Reward: 1:4.25 ratio

Stop Loss Strategy: The recommended stop loss for this type of trade is the next black candle formation against your entry. This means using the same offset ticks (19 for 1510, 34 for 3020) in the opposite direction of your entry.

ATM Recommendation: We recommend setting an ATM (Advanced Trade Management) like 4 ticks TP (Take Profit) and 19 ticks SL (Stop Loss) for optimal risk management on 1510 charts, and 8 ticks TP to 34 ticks SL for 3020 charts.

Note: These are recommended guidelines. Always adjust based on market conditions, volatility, and your risk tolerance. The 1510 chart is generally preferred for its tighter risk management.

Trade Entry Conditions

SRE=S Confirmed

SRE=S: Swing Retrace Extension = Confirmed

When to trade: Take these black candle formation trades AFTER SRE=S is confirmed

Chart preference: 1510 is recommended for tighter risk management

No Extension Confirmed

Scenario: If there is NO extension confirmed

Market condition: Trend is about to bend/change direction

Action: You can still take that trade on 1510 or 3020 (1510 recommended)

Key Insight: SRE=S confirmation indicates a strong trend continuation setup. When no extension is confirmed, it signals potential trend reversal, but you can still trade the black candle formation with proper risk management.

Trend Bending Signals

Go SHORT Signal

Pattern Sequence:

HH (Higher High)
HL (Higher Low)
First LH (Lower High)

Action: GO SHORT - Trend is about to bend downward

Go LONG Signal

Pattern Sequence:

LL (Lower Low)
LH (Lower High)
First HL (Higher Low)

Action: GO LONG - Trend is about to bend upward

Trend Bending Logic: When you see the pattern sequence break (HH→HL→LH for short, or LL→LH→HL for long), it indicates the trend is about to change direction. This is your signal to enter a position in the new trend direction.

Chart Type Reference

Chart Type	Tick Count	Description
1510	19 ticks	Black candle formation offset ticks
3020	34 ticks	Black candle formation offset ticks

Pattern Types Reference

Sell Stop Patterns (Going SHORT)

HH - Higher High (Sell Stop: Entry - ticks)
LH - Lower High (Sell Stop: Entry - ticks)
DT - Double Top (Sell Stop: Entry - ticks)

Buy Stop Patterns (Going LONG)

LL - Lower Low (Buy Stop: Entry + ticks)
HL - Higher Low (Buy Stop: Entry + ticks)
DB - Double Bottom (Buy Stop: Entry + ticks)

Trading Logic:
• Buy Stop: You will be going LONG from the current price + ticks (LL, LH, DB patterns)
• Sell Stop: You will be going SHORT from the current price - ticks (HH, HL, DT patterns)

Calculate Stop Prices

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