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Elephant and Pug pattern

The Elephant and Pug pattern is based on Japanese candles and works best on daily charts. All currency pairs are suitable for trading.
Rules for trading the "Elephant and Pug"
Buy
The formation of a safe white candle ("Elephant") occurs after a black candle with a small body, preferably a doji;
After the "Elephant" a second white candle is formed, but smaller in size. It's called "pug". The size of the second candle should not exceed 60 points. The closing price of the second white candle should be greater than or equal to the maximum price of the first candle (maximum tail);
When the next candle opens after the pattern, we open a buy deal.
Set Stop Loss and Take Profit:
We set the stop loss below the opening price of the second candle (if the lower tail is not far away, then it is better to stop it). The minimum stop is 35 points, the maximum is 65 points;
After passing the positive zone 35-40 points, the transaction is transferred to the balance;
We close the deal at the market price at the time of closing the first day after entering the market.
Elephant and Pug pattern
Sell
After a white candle with a small body, a confident black "Elephant" candle is formed;
After the "Elephant" a second black "Pug" candle is formed with the same conditions of purchase;
At the opening of the next day, the candle opens a deal for sale; Stop loss and take profit are set in the same way as the purchase.
Elephant and Pug pattern
Tips for exchanging the "Elephant and Pug" model:
The model works best when completing the correction of the previous trend;
Be careful when trading this pattern on Friday.

Elephant and Pug pattern Reviewed by learn forex trading on March 15, 2020 Rating: 5

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