This is a famous 3 white soldiers, black crows system. Pl google to know more about this system
Introduction
If we see 3 consequitive green bars, each candle closing higher than previous then we call it 3 white soldiers. Each candle has to have high higher than prev high and close higher than prev close. This is a reversal pattern, so for best results it should occur at swing low. But always we dont get at swing lows, so use your judgement. If 3rd candle has very small body, then probably we are running out of steam. Also if 3rd candle has very long body, then also we might have advanced too much. These are subjectives. Preferably each candle should have very small vick/tail.
In this scenario we enter LONG on break of 3rd candle high.
Similar thing for red candles. we call them black crows
Entry
Long on break of high of 3rd solder bar. Short on break of 3rd black crow bar. For best results check the location and size of bars as mentioned above
Exit
This system has only stops. no take profits. initial stop is low of 3rd candle for long and high of 3rd candle for short. After every bar, move stop to prev bar low for long and high for short.
You can have your own exit strategy, but i find this is easy and profitable.
H4 and Daily. I dont recommend other timeframes unless location is very good
Pairs GBPUSD, EURUSD. It should work with any major pair. But i got good results with these 2 pairs only
Here is an EA for this, you can backtest and forward test.
Introduction
If we see 3 consequitive green bars, each candle closing higher than previous then we call it 3 white soldiers. Each candle has to have high higher than prev high and close higher than prev close. This is a reversal pattern, so for best results it should occur at swing low. But always we dont get at swing lows, so use your judgement. If 3rd candle has very small body, then probably we are running out of steam. Also if 3rd candle has very long body, then also we might have advanced too much. These are subjectives. Preferably each candle should have very small vick/tail.
In this scenario we enter LONG on break of 3rd candle high.
Similar thing for red candles. we call them black crows
Entry
Long on break of high of 3rd solder bar. Short on break of 3rd black crow bar. For best results check the location and size of bars as mentioned above
Exit
This system has only stops. no take profits. initial stop is low of 3rd candle for long and high of 3rd candle for short. After every bar, move stop to prev bar low for long and high for short.
You can have your own exit strategy, but i find this is easy and profitable.
H4 and Daily. I dont recommend other timeframes unless location is very good
Pairs GBPUSD, EURUSD. It should work with any major pair. But i got good results with these 2 pairs only
Here is an EA for this, you can backtest and forward test.
Attached File(s)
