My name is Michael, (A.K.

A Frenchman)

I would like to share with you a simple price action, pure candlestick, naked chart strategy that can
be used for forex, commodities etc

No beating around the bush. Let’s go straight to the meat of the matter. But, please before we do
so, take note of the following:

1. This system is easy to follow

2. No indicator is needed.

3. You must have a working knowledge of support and resistance.

4. It isn’t a fail proof system. But I tell you, it’s very potent.

5. Works on all time frames.

6. All you need is patience and discipline.

7. News release can rubbish the system. So watch out for news before placing your trade.

8. It’s a trend friendly system. You’re not trading against the trend.

9. Tight stop loss. If your stop loss is hit, you only lose one candle. I will elaborate on this
during the lecture.

10. You can integrate the system into your own trading system.

Here we go…

Let me introduce you to this pure 100% price action strategy which I call the ELEPHANT CANDLE
STRATEGY.
1st chart.

We start with a buy setup.

From the chart above, we can observe that price is heading north. In other words the bulls are in full
control. Then suddenly the bears from nowhere surfaced. A big bearish candle shows up. I call it an
elephant candle because of its size.

From the moment this candle opened up to when it closed, the bears were in control all the way.
Now as this elephant candle closes, traders monitoring the market will conclude and say, “oh dear,
this is a reversal in the making”. Those with buy positions will immediately start closing them all.

Now, after the close of the red elephant candle, the next candle opened. Now see what happened.
The bulls came back and recovered all the ground they lost to the bears. The moment this happens,
we know there was no reversal. It tells us the uptrend has resumed.

This is where we come in. the moment the high of the red, bearish elephant candle is taken out by
10pips we go long.
Our stop loss is the low of the red bearish elephant candle by 10pips. Our take profit is the next
significant resistance. Like I said earlier, you must have a working knowledge of support and
resistance so you can place an ideal take profit.

So for this example, you place your take profit at the next significant resistance level.

2nd chart.

From our extreme left, we see series of blue candles indicating price heading north. Then the big red
elephant size candle appears. After when the red elephant candle closes, the next candle opens and
swallows our red elephant candle. The moment this happens, we buy at the break of the high of our
red elephant candle.
3rd chart.

Don’t forget, we are reading the chart from left to right.

So price is going up. Our red elephant candle shows up. We see the next candle go bullish, breaks
the high of our red elephant candle. Don’t forget our entry is the break of the high of our red
elephant candle.
4th chart.

This time our buy setup is with a little difference. It isn’t always that the big red elephant candle is
followed and swallowed by one single candle. In this example, after the big red elephant candle we
had smaller bullish candles that gradually went up and took out the high of our red elephant candle.
So it isn’t a must that the red elephant size candle should always be swallowed by one single candle.
Smaller candles can still go up and fill us in. please don’t forget, our entry and stop loss is
determined by the high and the low of the elephant candle.
5th chart.

This is another example where the red elephant candle high is taken out by smaller bullish candles.
6th chart.

Now, we are looking at sell scenario.

This time around, we are looking for blue elephant size candle. Just the opposite of the buy setup.
7th chart.

We have another sell.

Yet another sell setup.

This chart shows a buy setup. This is just to explain a little bit about what I mean by setting your
take profit at the next significant resistance.
10th chart.

Here we have a sell setup. But you will notice that it’s so close to the next significant support so the
trade basically failed. So we must not take trades close to significant support and resistance.
11th chart.

The reason why I uploaded this chart is to let you know that this isn’t a fail proof strategy. The
circled candle shows our strategy and our entry. Everything worked out accordingly. But you see
after our entry, price came down, took our stop loss before heading north. So please, always
remember that nothing is guaranteed.
12th chart.

In this chart there are two circles. Blue and black. Let’s not confuse the elephant candle strategy
with the sandwich strategy. The blue circle shows our sandwich strategy. The black circle shows the
elephant candle strategy. The difference is that the sandwich candle pull back barely affects a candle
while the elephant candle must affect minimum of two candles.
The four charts above, I chose not to write much on them so you can see clearly the setups.
Our last chart is plain. Identify the setup on your own.

To end, let me say that this strategy can equally be used as a reversal strategy. That would be
another lecture for another day. But for this lecture, it’s used as a continuation of the preceeding
trend.

Ok friends, that’s all for this strategy. I hope my system is simple enough. I will encourage you to
demo trade it for at least a month and see how potent it is.

For questions and observations, don’t hesitate to reach me on WHATSAPP +2348055224643