This is not my idea, just happened to see it and post to share and ask for opinions on whether is this really profitable?
Description:
This is a 3-bar setup, but only one of the bars determines its direction on the next candle. Where the first two candles will produce the PIP range for a TP Target. This PIP Range can also be used for Stop Loss Levels so this approach becomes a 1:1 reward to risk.
Buy set up:
Bar (2) needs to close higher than the previous candle's high.
Bar (3) during its development, or when the candle has fully developed, price must touch Bar (2)'s open.
IMPORTANT: It MUST be the same bar type, in this case since both Bar 1 and 2 are Bull Bars, the 3rd bar must be a Bull bar on its close.
And this 3rd bar must close higher than Bar (2)'s close (preferably its high).
Enter a Long Trade/Buy on Close of Bar (3).
Calculate from the Low of Bar (1) to Bar (2)'s high.
This will act as your TP and SL Level.
Sell set up:
Bar (2) needs to close lower than the previous candle's low.
Bar (3) during its development, or when the candle has fully developed, price must touch Bar (2)'s open.
IMPORTANT: It MUST be the same bar type, in this case since both Bar 1 and 2 are Bear Bars, the 3rd bar must be a Bear bar on its close.
And this 3rd bar must close lower than Bar (2)'s close (preferably its Low).
Enter a Short Trade/Sell on Close of Bar (3).
Calculate from the High of Bar (1) to Bar (2)'s Low.
This will act as your TP and SL Level.
Attached picture of buy and sell setup for your reference.
==========================
I go back in time to find the exact setup and so far, the results are quite good!
Description:
This is a 3-bar setup, but only one of the bars determines its direction on the next candle. Where the first two candles will produce the PIP range for a TP Target. This PIP Range can also be used for Stop Loss Levels so this approach becomes a 1:1 reward to risk.
Buy set up:
Bar (2) needs to close higher than the previous candle's high.
Bar (3) during its development, or when the candle has fully developed, price must touch Bar (2)'s open.
IMPORTANT: It MUST be the same bar type, in this case since both Bar 1 and 2 are Bull Bars, the 3rd bar must be a Bull bar on its close.
And this 3rd bar must close higher than Bar (2)'s close (preferably its high).
Enter a Long Trade/Buy on Close of Bar (3).
Calculate from the Low of Bar (1) to Bar (2)'s high.
This will act as your TP and SL Level.
Sell set up:
Bar (2) needs to close lower than the previous candle's low.
Bar (3) during its development, or when the candle has fully developed, price must touch Bar (2)'s open.
IMPORTANT: It MUST be the same bar type, in this case since both Bar 1 and 2 are Bear Bars, the 3rd bar must be a Bear bar on its close.
And this 3rd bar must close lower than Bar (2)'s close (preferably its Low).
Enter a Short Trade/Sell on Close of Bar (3).
Calculate from the High of Bar (1) to Bar (2)'s Low.
This will act as your TP and SL Level.
Attached picture of buy and sell setup for your reference.
==========================
I go back in time to find the exact setup and so far, the results are quite good!
