Three daily candles

Here is a very simple trading strategy that works by simply looking at the last three
daily candles on any pair‟s daily chart.
Entry rules
For buying or “going long”, these 3 conditions must be met:
1. The body of the most recent Daily candle must be greater than the body of
the previous two daily candles.
2. The Second Daily candle must be bearish (black candle).
3. The closing price of the most recent Daily candle must be more than the
close of the Second Daily candle.
For selling or “going short”, these 3 conditions must be met:
1. The body of the most recent Daily candle must be greater than body of the
previous two daily candles.
2. The Second Daily candle must be bullish (white candle).
3. The closing price of the most recent Daily candle must be less than the close
of the Second daily candle.
Exit Rules
In both cases, you can take profit on the next Daily candle at the psychological levels of
50 and 00.
Stop Loss:
50 pips or less than 3% of your account.
Examples
Long trade:
Explanation:
In the above example, the candle 3 is the latest candle which has the largest body. The
candle #2 is bearish and the closing price of the candle #3 is higher than the close of
the candle #2. We enter a long trade at the open of the new candle.
Short trade:

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