SP2L Pour Samadi Indicator [TradingFinder] Spike 2 Legs PA

🔵Introduction

The SP2L (Spike–2Leg) strategy, designed by Mohammad Ali Poursamadi, an international Iranian trader, is a simple yet powerful price action setup developed to identify precise entry points following sharp market movements.

A Spike refers to a sudden and rapid move in the market, usually triggered by a heavy flow of orders in one direction. This sharp movement creates an Imbalance between buyers and sellers. Since the market does not have time to trade evenly during such moves, it generates Inefficiency on the chart.



The direct result of a spike is usually the formation of a Fair Value Gap (FVG) — a space between candles indicating that trades were not distributed fairly. In simple terms, the spike is the cause, while Imbalance, Inefficiency, and FVG are its consequences.



🟣How is a Spike formed?

• Big Movement: A spike begins with a sharp and powerful move caused by heavy order flow in one direction.
  
• Imbalance: This move disrupts the balance between buyers and sellers.
  
• Inefficiency: Due to the speed of the move, the market fails to trade efficiently, leaving inefficiency on the chart.
  
• Fair Value Gap (FVG): The final outcome is a price gap between candles, highlighting unfair distribution of trades.
  

In SP2L, entries occur right after a spike. The entry logic is based on the structure of each candle’s Higher Lows (HLs) or Lower Highs (LHs).

When a spike occurs and candles consecutively form higher lows or lower highs:

• In bullish conditions, each previous low becomes a potential Buy Entry.
  
  
• In bearish conditions, each previous high becomes a potential Sell Entry.
  

🔵How to Use

In the SP2L strategy, entries occur directly within the ongoing strong movement (the spike). A spike forms when heavy order flow pushes the market strongly in one direction, creating several large candles in sequence. This disrupts balance and leaves patterns such as Imbalance and FVG on the chart.

During such moves, the market does not necessarily retrace; instead, it continues strongly in the direction of the spike. The key principle in SP2L is that candles begin forming Higher Lows (HLs) in a bullish spike or Lower Highs (LHs) in a bearish spike. Each HL or LH acts as a potential entry level, but the actual entry only triggers once price returns to retest that level. This allows the trader to enter within a powerful wave while keeping stop-losses clear and risk controlled.



🟣Bullish SP2L

When a bullish spike occurs, candles consecutively form Higher Lows. Each HL marks a potential entry. The entry is activated when price returns to that HL.

Stop-Loss (SL): Placed below the candle where the spike originated, usually the lowest point before the sharp move.

Take-Profit (TP): Defined based on classic risk-to-reward ratios, commonly TP1 = 1:1 and TP2 = 1:2. Stronger trends may allow extended targets.



🟣Bearish SP2L

When a bearish spike occurs, candles consecutively form Lower Highs. Each LH marks a potential sell entry. The entry is triggered when price returns to retest that LH.

Stop-Loss (SL): Placed above the candle where the bearish spike started, usually the highest point before the sharp drop.

Take-Profit (TP): Similar to bullish setups, typically TP1 = 1:1 and TP2 = 1:2, with extended targets possible if bearish momentum continues.




🔵Settings

🟣Spike Filter | Movement

Minimum Spike Bars: Defines the minimum number of consecutive candles required for a valid spike.
Movement Power: Enables or disables the momentum-based spike filter.
Movement Power Level: Sets the strength threshold; higher values filter out weaker moves and only detect strong spikes.

🟣Spike Filter | Gap

Gap Filter: Enables or disables the gap filter.
Gap Type: Selects which type of gap should be detected (All Gaps, Significant, Structural, Major).

🟣Spike Filter | Doji

Doji Tolerance: Defines whether doji candles are allowed within a spike.
Max Doji Body Ratio: Maximum ratio of body-to-total candle size for classifying a candle as a doji.
Max Doji in Spike Ratio: Maximum percentage of doji candles allowed within a spike.

🟣Trend Detection

Trend Detection: Enables or disables the trend detection module using dojis.
Max Doji Body Ratio: Maximum body-to-candle ratio used to classify a doji in trend calculations.
Candle Lookback: Number of candles used to calculate doji percentage for trend evaluation.
Max Doji in Trend Ratio: Maximum percentage of doji candles allowed within the lookback window for the trend to be valid.

🟣Position Management

Stop-Loss Threshold: Enables or disables the stop-loss threshold feature.
Stop-Loss Threshold Value: Defines the value of the stop-loss threshold for risk management.
Risk-Reward Ratio: Sets the desired risk-to-reward ratio (e.g., 1:1 or 1:2).
Include SL Threshold in R:R: Determines whether the stop-loss threshold is included in risk-to-reward calculations.

🟣Display Settings

Display Mode: Chooses between Setup (showing setups) or Signal (showing trade signals).
Only Display the Last Position: Displays only the most recent position on the chart when enabled.


🔵Conclusion

The SP2L (Spike–2Leg) strategy, designed by Mohammad Ali Poursamadi, offers a simple yet effective framework for trading strong market flows. Built on the logic of spikes and candle structures (HLs and LHs), it identifies precise entry points directly within the main movement of the market, where risk is clear and reward is logical.

With transparent rules, defined stop-loss placement, and flexible risk management, SP2L proves especially effective in volatile markets such as forex, gold, and indices. Its simplicity makes it practical for both beginner traders and seasoned professionals.

In summary, SP2L helps traders avoid unnecessary complexity by focusing on spikes and consecutive HL/LH formations to capture accurate, low-risk entries.