SP2L Strategy (Spike–2Leg) by Mohammad Ali Poursamadi
The SP2L Strategy (Spike–2Leg) is a Price Action setup designed to identify precise entry points following sharp market movements. This strategy helps traders enter the main trend at the optimal point after a powerful spike and a brief correction.
Its simple rules, clearly defined stop-loss, and logical risk-to-reward ratio have made SP2L one of the most popular methods among traders in volatile markets such as Forex, gold, and indices. This strategy was introduced and taught by Mohammad Ali Poursamadi.
SP2L at a Glance…
What is SP2L?
The SP2L strategy is built on sharp market movements. When the market makes a powerful spike and then enters a correction, this strategy identifies a precise entry point in the direction of the main trend—where risk is low and the probability of success is high.
Why Does It Work?
Because after a sharp movement, the market usually requires a brief correction before continuing the trend. The SP2L strategy identifies this retracement point and places the entry precisely where it aligns most with the market momentum, resulting in lower risk and higher reward.
When to Use It?
The SP2L strategy can be applied in any market whenever a spike occurs. Simply identify a sharp movement, and after the correction, wait for the entry point. However, during high-volume sessions, such as the New York session, the probability of success and the chance to capture significant moves are higher.
What is the SP2L Strategy?
The SP2L strategy is a simple and practical Price Action method based on the logic of Power → Correction → Continuation. This method was introduced by Engineer Mohammad Ali Poursamadi and consists of three main components: Spike, 2nd Leg, and Entry Level.
1.Spike
A Spike refers to a strong and sudden market movement, usually consisting of several large consecutive candles in one direction.
An important feature of a valid spike in the SP2L strategy is the presence of a price gap (P-Gap) between the candles.
This gap indicates the entry of significant liquidity and the market’s serious intention to change the price level.
If a sharp movement occurs without a gap, it is not considered valid in this strategy.
2. Second Leg of the Spike
After the spike, the market often makes a correction. In SP2L, we look to capture the Second Leg:
In an uptrend: Wait for the corrective candle to reach the low of the previous candle.
In a downtrend: Wait for the corrective candle to reach the high of the previous candle.
🔹 In addition to the initial entry, there is a secondary entry:
You can add to the position at 50% of the distance from the entry point to the stop-loss. This improves the average entry price and enhances risk management.
3. Entry Level
Once the Second Leg is triggered, the trader enters in the direction of the spike:
Entry: In the same direction as the spike (Buy after an upward spike or Sell after a downward spike).
Stop-Loss (SL): Placed behind the candle from which the spike originated.
Take-Profit (TP): By default, set at a 1:1 risk-to-reward ratio.
Best Conditions to Use SP2L
This strategy performs best under the following conditions:
When the spike breaks an important price level (support, resistance, or supply and demand zones).
When the spike originates from the bottom or top of a price channel.
When the direction of the spike aligns with the higher timeframe trend.
Summary
The SP2L strategy aims to capture the Second Leg of a spike, where the market, after a strong movement and gap, makes a small correction and then continues in the direction of the initial momentum.
🔑 Key Point:
Before using it on a live account, conduct your personal backtesting and clearly define your entry conditions. Only enter trades under those exact conditions—not every setup that appears.
Where Should I Start My Trading Journey?
What is the SP2L Strategy and Why Is It Called “Spike Two Leg”?
The SP2L Strategy, also known as Spike–2Leg, is a Price Action method introduced by Mohammad Ali Poursamadi. This strategy is built on sharp market movements, and because the entry is made on the second leg following a spike, it is called “Two Leg.”
Which Markets Does It Work On?
SP2L can be applied in all markets, but it is most effective and widely used in volatile markets such as gold (XAUUSD), indices, and major currency pairs.
Which Timeframes Does It Work Best On?
این استراتژی قابلیت اجرا در تایمفریمهای مختلف را دارد، اما معمولاً در تایمهای کوتاه مثل M1 و M5 شرایط بهتری برای ورودهای دقیق ایجاد میکند.
What Is the Difference Between SP2L and Other Strategies?
Unlike many other Price Action setups, SP2L focuses only on sharp movements (valid spikes) accompanied by a price gap (P-Gap). This feature makes entries more precise and increases the probability of success.
