Oliver Velez Elephant Candle Strategy

Learn the Oliver Velez Elephant Candle trading strategy on a 2-minute timeframe for stocks, futures, and forex. Identify large candles near moving averages for

Published · Updated · Methodology: Price Action

Part of: Moving Average Strategies

  • Methodology: Price Action
  • Content type: strategy
  • Timeframes: 2 minutes
  • Markets: Stocks, Futures, Forex, Micro S&P500

Indicators used

  • Moving Average

Source video

Decoded from: Estrategia de Oliver Vélez Muy Buena Para Acciones, Futuros, Forex.... by Inversiones Hoy — watch the original

Key timestamps:

  • 0:00 - Introduction and personal trading struggles
  • 2:50 - Introduction to Oliver Velez's strategies
  • 3:15 - Risk management: stop loss is one candle
  • 3:25 - Timeframe: 2-minute chart
  • 3:40 - Elephant candles definition
  • 4:00 - Moving Averages used (200 and 20)
  • 4:20 - Entry rule for long position
  • 4:30 - Stop loss placement
  • 5:00 - Trailing stop loss rule
  • 5:40 - Example of a winning trade

Strategy overview

A moving average smooths price into a single line that shows, at a glance, which way the market has been leaning. In this decoded strategy, though, the moving average never pulls the trigger — it sits in the background as trend context while a price-action pattern does the actual work. That pattern is the "elephant candle," a signature idea from veteran US trader Oliver Velez, decoded here from Inversiones Hoy's Spanish-language walkthrough of his multi-market approach.

An elephant candle is a large, wide-bodied candle — one whose open-to-close range dwarfs the surrounding bars and shows one side of the market decisively taking control in a single push. The video frames this candle as the primary read, with the moving averages layered underneath as a directional backdrop: the candle marks the moment, the average frames the bias. It is presented on a fast two-minute intraday chart and pitched, per the video's own title, across stocks, futures and forex — the "muy buena" ("very good") billing is the channel's own, not a measured result.

What makes this entry worth studying is the role reversal: a setup catalogued under moving averages that actually leans on candle reading, with the average demoted to supporting context. This page situates that concept alongside the source video rather than reproducing Velez's exact entry, exit and risk settings, so you can see how the pieces relate before deciding whether to test the idea yourself.

Topics

oliver velez · elephant candle · pine script · trading strategy · tradingview strategy · price action · 2 minute strategy · stocks trading strategy · futures trading strategy · forex strategy · micro s&p500 trading · moving average strategy · elephant candle strategy

Frequently asked questions

What is an "elephant candle" in Oliver Velez's trading?

An elephant candle is a large, wide-bodied candle whose range clearly exceeds the surrounding bars, signaling that buyers or sellers have taken decisive control in a single move. In this strategy it serves as the primary price-action signal rather than an indicator reading.

Do the moving averages generate the entry in this strategy?

No. In this decoded version the moving averages act as trend context, framing the market's directional bias, while the elephant candle pattern is what marks the actionable moment. The average supports the read instead of triggering it.

What markets and timeframe does the video use?

The source video from Inversiones Hoy presents the method on a fast two-minute intraday chart and, per its title, pitches it for stocks, futures and forex. It is a Spanish-language decoding of US trader Oliver Velez's approach.

How can I evaluate a price-action idea like this before trading it?

Study the concept first, then backtest the pattern on historical intraday data for the market you trade. Strategy Decoder extracts the structure of strategies like this one from video sources so you can review and test them on TradingView.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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