This is a great system..it reminds me of using the candle formations:
http://www.candlestickforum.com/stor...ldiers_web.jpgTHREE WHITE SOLDIERS
Recognition: Three-Day reversal pattern is easily identified by three large Bullish candlestick signals, an obvious pattern of buying.
Pattern Psychology: A strong downtrend or flat trading period with buyers overcoming the early sellers.
http://www.candlestickforum.com/stor...lack_crows.jpg THREE BLACK CROWS
Recognition: Three long black candles occur, after a strong uptrend, all of close to equal length.
Pattern Psychology: The uptrend has now reached levels where the sellers have started to step in. This persistant pressure by the Bears provides the potential for a strong downtrend.
You are just kinda taking advantage of that formation and adding some filters to it. Couple that with a good money management strat (such as 2% risk based on stop) and a decent win rate and maybe 4 good pairs...and my friend you have a solid system. I am playing with it now, only because i like simple. Ill keep up with you.
http://www.candlestickforum.com/stor...ldiers_web.jpgTHREE WHITE SOLDIERS
Recognition: Three-Day reversal pattern is easily identified by three large Bullish candlestick signals, an obvious pattern of buying.
Pattern Psychology: A strong downtrend or flat trading period with buyers overcoming the early sellers.
http://www.candlestickforum.com/stor...lack_crows.jpg THREE BLACK CROWS
Recognition: Three long black candles occur, after a strong uptrend, all of close to equal length.
Pattern Psychology: The uptrend has now reached levels where the sellers have started to step in. This persistant pressure by the Bears provides the potential for a strong downtrend.
You are just kinda taking advantage of that formation and adding some filters to it. Couple that with a good money management strat (such as 2% risk based on stop) and a decent win rate and maybe 4 good pairs...and my friend you have a solid system. I am playing with it now, only because i like simple. Ill keep up with you.
Nothing is hard, some things just take more time and discipline.