Been messing around with charts looking at various breakouts and setups. Been looking at this pattern and doing a little bit of a manual backtest seeing if a system could be made from it. Examined EUR/USD 5 min charts. Early days. Not sure if it's a Japanese candle pattern - it kinda looks familiar.
It consists of 3 bars. For longs, bar 1 has to be bearish, bar 2 has to be bullsih AND make a lower low/lower high than bar 1. Bar 3 has to also be bullish making a higher low/higher high,than bar 2. The high has to be higher than bar 1's high.
Take profit = the range of bar 2 and bar 3. Stop loss is low of bar 2.
For shorts, bar 1 has to be bullish, bar 2 has to be bearish AND make a higher low/higher high than bar 1. Bar 3 has to be bearish and make a lower low/lower high than bar 2. The low has to be lower than bar 1's low.
Take profit = the range of bar 2 and 3. Stop loss is the high of bar 2.
Note - this is just an idea! Charts to follow.
It consists of 3 bars. For longs, bar 1 has to be bearish, bar 2 has to be bullsih AND make a lower low/lower high than bar 1. Bar 3 has to also be bullish making a higher low/higher high,than bar 2. The high has to be higher than bar 1's high.
Take profit = the range of bar 2 and bar 3. Stop loss is low of bar 2.
For shorts, bar 1 has to be bullish, bar 2 has to be bearish AND make a higher low/higher high than bar 1. Bar 3 has to be bearish and make a lower low/lower high than bar 2. The low has to be lower than bar 1's low.
Take profit = the range of bar 2 and 3. Stop loss is the high of bar 2.
Note - this is just an idea! Charts to follow.