3 Candles - simple profitable forex strategy
3 Candles strategy is very simple, and all because of the work with the strategy of using only one indicator 3rdCandle and complements the only one filter in the role of the well-known Stohastic Oscillator (5, 3, 3).
Principle 3 Candles strategy is based on the pattern 1-2-3 of trading system Price Action, the essence of which is to determine the short-term change in the direction of price movement, giving us the opportunity to open a position in the direction of the momentum and take a small profit.
Pattern 1-2-3. In this illustration the first candle - is a candle at which point the «High» and point «Low» are above points «High» and «Low» two neighboring candles left and right. Right candle (candle 2) is confirming, and as soon as she closed it can be argued that the pattern can be has been formed and enter the market. Enter the market at the opening of the third candle, which will be our profit:
Characteristics of strategy ProFX2
- Type of strategy: Price Action
- Platform: Metatrader4
- Currency pairs: Any
- Trading Time: Round the clock
- Timeframe: M5 or higher
- Recommended broker: Alpari, RoboForex
Rules strategy 3 Candles:
- Enter the market at the opening of the third candle (following a candle on which an arrow), the Stochastic should be directed towards the open position.
- If Stohastic Oscillator (5, 3, 3) does not confirm the signal (sent in the opposite direction, or the direction it is not clear) - do not enter the market.
- If the candles 1 and 2 visually very small, about any impulse cannot speak and, accordingly, do not enter the market.
- If the second candle is visually very large and stands out in the chart, do not enter the market.
Stop Loss exhibited several points higher / lower, respectively, point «High» or «Low» first candle.
Take Profit - fixed on a pair and timeframe. But more appropriately dealt with the third candle, as profit and out of a trade for its closure.
Several examples of possible committing trades (marked with a red vertical line):
- 3 candles.tpl
Free Download 3 Candles