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: