Candlestick simple system

Candle traders call 3 consecutive bullish candles 3 white soldiers as they all close higher than open. They call 3 consecutive bearish candles 3 black crows as they all close lower than open.

This system uses Bollinger band (20, 2). When you see 3 white soldiers, you buy. And when you see 3 black crows, you sell. It is as simple as that. Any 3 consecutive candles can be used but the best is when the price has just bounced off the BB.

This works for any currency pair and any time frame. However, you'll see more winning trades on daily charts.

When you see a reverse after 3 white or black candles, you could simply close your position. And you could re-enter when the price returns to the point where the retrace happened. Typically, you could expect 2-3 times the amplitude of retracement. You could use it as your profit target/exit point (e.g. if the price retraces 20 pips, you could set your profit target of re-entered trade at 40 to 60 pips).

Forex Strategy Articles & News

Top 5 factors that affect exchange rates ...

There are many factors that affect exchange rates of currencies. However some are more important in currency trading than others. These are; Interest and Inflation rates, Trade balance, Currency market speculation, Foreign investment and Central bank market intervention. Learn how to use these factors in your forex tra ...

Forex Navigation