If I am right there is a current set up 13/03/2020 on gold daily (xau/usd) with the 4th candle about to close
Ignored
Good spot, this set up is strong too and its took out last months high. Best set up out the lot and the candles are nice, not erratic, this will go down for sure
I'll code this if you can answer my questions. I read the thread and did not see a mention of:
Where do you set the TP? Do you hold each trade for an inverted 4 bar pattern?
Where do you set the SL?
How do you define a candle that is 'too tall' to be a valid setup?
Also, please state if this is correct:
A valid setup must be 2 bars up then 2 down (for bars 1,2,3,4) or else 2 bars down then 2 up? Do we define what is 'up' and 'down' by candle bodies only or also by setting new higher highs/lower lows?
Answered in post 24 I think. https://www.forexfactory.com/showthr...9#post12802529
We are only examining higher highs and lower lows, so a valid (short) setup is:
a bull bar followed by
a bar with a higher high followed by
a bar with a lower high followed by
a bar that breaks the low of the previous candle
and a valid long setup is:
a bear bar followed by
a bar with a lower low followed by
a bar with a higher low followed by
a bar that breaks the high of the previous candle?
Candle 4 must break the low/high of candle 3 and then close beneath/above that low/high?
Entry is set at the low/high of candle 4 - short trades at the low, long trades at the high?
a valid (short) setup is: a bull bar followed by a bar with a higher high followed by a bar with a lower high followed by a bar that breaks the low of the previous candle and a valid long setup is: a bear bar followed by a bar with a lower low followed by a bar with a higher low followed by a bar that breaks the high of the previous candle? Candle 4 must break the low/high of candle 3 and then close beneath/above that low/high? Entry is set at the low/high of candle 4 - short trades at the low, long trades at the high?
Ignored
I may be wrong but my understanding is that your candle 1 requirement of it being a bull candle for a Long or a bear candle for a short is not correct. Candle 2 just must have that higher high or lower low to make candle 1 qualify. That is my (limited) understanding anyway.
SL TP https://www.forexfactory.com/showthr...8#post12801228
Tall candle probably 3 times surrounding candles.
Use the fractal indicator and the apex is Bar 2.
Candle 4 only need to break high/low of candle 3. Need not close beyond candle 3 high/low.
Entry at candle 4 high/low.
guys please read the rules, i just require a 3 bar fractal. 2 lower highs , 2 higher lows , i never mentioned about any of the candles being a bull candle etc!!! do people actually read the thread?
ANYWAY, I MADE 2 LOSSES YESTERDAY ON AUDCAD BECAUSE I NEVER KEPT TRADE 1 IN ( BEARISH SIGNAL) MY STOP WOULD NOT OF BEEN HIT ( NO WHERE NEAR ) NOW ITS MOTORING TO INTITIAL TP.
THIS METHOD WORKS IF YOU KEEP TO RULES AND I NEVER DONE THAT YESTERDAY. MY MONEY MANAGEMENT MEANS I AM STILL IN PROFIT FOR THE WEEK ON 2 WINS AND 2 LOSSES. I MADE AN HORRIFFIC MISTAKE YESTERDAY CLOSING MY AUDCAD TRADE SHORT TO GO LONG. IF I KEPT TO RULES ID BE 300 PIPS IN PROFIT FOR THE WEEK. ILL LEARN
