Disliked{quote} Hi Emmanuel, I noticed you user the Master Candle, do you go and take trades on the 4th and 5th candle? I read on the forums that you can start looking at at trades after 4 candles form to create the master candle. Then you start looking for your break out bar. b1 b2 b3, once it breaks out you take profits. How do you trade it and what do you look forward too? Also I found this indicator. let me know if it's something I can use or just focus on looking at the charts and spotting my own Master candle setup. Thank you.Ignored
Hi redcloudxll,
That Master Candle MC indicator helps to look at history charts to see where those MC occur and use that for back-testing study purpose.
In realtime, that MC indicator will alert you when the 4th candle closes and confirms the 1st Candle as the Master candle.
MC is just a simple way to identify market consolidation and these usually occur at some price level, can be historical support and resistance, BRN, other type of S&R used by other traders.
Look at EURAUD D chart, the D pullback candle appeared at 1.5200 where there were also historicl price swing before if we seethem on the MN and W! charts.
The consolidation seen using the MC occur around BRN1.5000 . The breakou was quite clear and the TDI is in favour of the breakout.
One of my trading rule is never to chase after huge Wide Range Bar WRB candles around S&R, this because we can be caught in the next candle being the first Inside Bar. This is the 1st warning of a potential MC, and we wait for the 3rd and 4th candles to confirm the MC.
Some breakouts will fail, therefore we should not enter breakout trades using full risk. Build up positions slowly and gradually when the trend is established.
A quick summary -
- focus on higher TF and look for S&R
- MC trading works best in D1 and H4, also H1.
- use money management strategy which mitigates risks.
- use MC in combination with other bar patterns like Bullish and Bearish Engulfing Bars, Bullish and Bearish Outside Bars. These will help in picking out the higher probability trade setups.
Hope this explains.
regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
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