3RD SHORTEST CANDLESTICK FOREX TRADING STRATEGY RULES
Watch the current candlestick forming and note its length in comparison to the previous two candlesticks that have already formed.
After the current candlestick closes and if its length is extremely (or unusually) short in comparison to previous candlesticks, then this is your signal candlestick where you will use to place the pending buy stop and sell stop orders on both sides to catch a breakout of price when it happens.
Place pending stop orders on both sides of the shortest candlestick. This is to capture the breakout in any direction price moves.
Place your stop loss anywhere from 3-5 pips on above the high (for a sell stop order) or below the low (for a buy stop order)
When a breakout happens on one side, cancel the other side’s pending order that was not activated.
How do you place take profit target? Couple of options: take profit when price reaches 3 times what you risked. For example, if you risked 20 pips than set your take profit target at 60 pips price level. Or you tail stop your trades, locking profit, placing it under the low (for a buy trade) or under high (for a sell trade). Or you can exit after the 3rd candlestick after entry.
Watch the current candlestick forming and note its length in comparison to the previous two candlesticks that have already formed.
After the current candlestick closes and if its length is extremely (or unusually) short in comparison to previous candlesticks, then this is your signal candlestick where you will use to place the pending buy stop and sell stop orders on both sides to catch a breakout of price when it happens.
Place pending stop orders on both sides of the shortest candlestick. This is to capture the breakout in any direction price moves.
Place your stop loss anywhere from 3-5 pips on above the high (for a sell stop order) or below the low (for a buy stop order)
When a breakout happens on one side, cancel the other side’s pending order that was not activated.
How do you place take profit target? Couple of options: take profit when price reaches 3 times what you risked. For example, if you risked 20 pips than set your take profit target at 60 pips price level. Or you tail stop your trades, locking profit, placing it under the low (for a buy trade) or under high (for a sell trade). Or you can exit after the 3rd candlestick after entry.
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