With due honestly, very few strategies are as simple as candlestick patterns. They are simple to read on trading charts, and that makes them one apt option for newbie traders. Numerous formations namely the Doji, Shooting Star and hammer aid traders find out their crucial break out points and carry out their trades properly and importantly lucratively. However, the candlestick Forex profitable strategy which traders will learn here is much simpler than the aforementioned.
So, those wanting to know more, follow the post carefully.
A Very Simple Forex Profitable Strategy Involving Candle Signals:
Before getting into the explaining this strategy, this is to declare that this approach was a result of some experiment by a venture veteran. It involves 3 successive candles both of bearish and bullish defined with the max and minimum size. Candle 1 denotes the more recent one while Candle 3 is the oldest market in the chart.
To trade with this strategy, traders will have to use a low historical drawdown, and each trade will be safeguarded by a trailing stop depending on the low and high candle stick. Those who have used this state that it works really well with momentum signals!
This strategy is quiet simple to use and consists of numerous settings namely slippage filter, spread filter which aid traders to adjust their strategy and survive in the market.
Crucial Rules of This Trading Strategy:
Moving Over To the Sell Rules of This Forex Profitable Strategy
With the help of EMA filters, one can easily determine the downtrend. To find it out, one will have to check if the FAST EMA is trending underneath the SLOW EMA. If yes then that position confirms the downtrend situation. Target Profit is set at the trade entry and also helps in closing the trades.
Buy Rules of This Forex Profitable Strategy
On the other hand, if the FAST EMA filter trends over the SLOW EMA, it marks the occurrence of an uptrend. If this situation takes place, then one would need to close down each of the 3 candlesticks according to its max and min body size. Traders can enter their appropriate formation depending on the close of the last candlestick.
Similar to the above scenario, Target Profit will be set upon the Entry, and it will also help in the closing down of each trade.
The strategy is compatible with MetaTrader Platform and works very well with EUR/USD.
How to Prepare Oneself?
There are many traders who believe that this is the best profitable Forex strategy around for those wanting to work with candlesticks. Whether that is true or not is subjective, but the thing which is definite is that it sure does help traders’ secure, stable profits.
So, one a tip for newbies should be to sign up an MT4 account and start working with this strategy. They can make use of strategy testing tools and determine how proficient this Profitable Forex strategy truly is. This will make them ready and confident to use it when they are trading with their real cash. So start with it today.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.