Hello all,
This is a very simple system that depends solely on price action. It uses no indicator except price itself. The system is composed of 3 candles only. The 3rd candle is your signal. I will call it "The Signal Candle". The timeframe can be anything but I prefer Daily. It is not limited to any pair. So you can trade any pair you want.
Rules for going Long
1- Close of Signal Candle is above the highest close of the preceding 2 candles
2- Length of the Signal Candle Body is greater than the length of any of the preceding candles' bodies
3- Length of the Signal Candle Body must not be greater than twice the body length of any of the preceding candles
4- Enter trade when the Signal Candle is completed
5- Exit trade at the end of the trading day
Rules for going Short
1- Close of Signal Candle is below the lowest close of the preceding 2 candles
2- Length of the Signal Candle Body is greater than the length of any of the preceding candles' bodies
3- Length of the Signal Candle Body must not be greater than twice the body length of any of the preceding candles
4- Enter trade when the Signal Candle is completed
5- Exit trade at the end of the trading day
This is a very simple system that depends solely on price action. It uses no indicator except price itself. The system is composed of 3 candles only. The 3rd candle is your signal. I will call it "The Signal Candle". The timeframe can be anything but I prefer Daily. It is not limited to any pair. So you can trade any pair you want.
Rules for going Long
1- Close of Signal Candle is above the highest close of the preceding 2 candles
2- Length of the Signal Candle Body is greater than the length of any of the preceding candles' bodies
3- Length of the Signal Candle Body must not be greater than twice the body length of any of the preceding candles
4- Enter trade when the Signal Candle is completed
5- Exit trade at the end of the trading day
Rules for going Short
1- Close of Signal Candle is below the lowest close of the preceding 2 candles
2- Length of the Signal Candle Body is greater than the length of any of the preceding candles' bodies
3- Length of the Signal Candle Body must not be greater than twice the body length of any of the preceding candles
4- Enter trade when the Signal Candle is completed
5- Exit trade at the end of the trading day
Make It Simple !