This simple forex strategy is incredibly effective in producing winning trades. It does so by trapping the price on significant candle that most often signalizes rapid price movement.
It simplifies finding a correction.
Correction is represented as series of candles closing against the direction of main trend. Those are drawn as bearish candles in uptrend and bullish candles in downtrend.
Candle opposing the trend are usually narrow as the price struggles to gain distance against the strong market flow in the direction of trend. The effort is sometimes overcame by a single wide candle that will cover the distance of correction in single session.
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This phenomenon will usually break the spirit of trend opposing group and price continuation in the direction of trend becomes very likely for at least a brief moment. As if all this wasn't enough, strategy uses multiple entry to increase winning rate beyond belief.
Used forex indicator
MACD (moving average convergence divergence) 12,26,9. MACD will simply take some weight of our shoulders by allowing us to focus on side of the market at the time. We will use MACD both as a filter and as a method to make strategy more enjoyable to trade in a long run
Forex strategy rules
BUY:
MACD histogram closing above zero. Enter long trades only.
Minimum of three consecutive bearish candle closed (doji candle may be included).
Extremely wide bullish candle closing above the highest high of previous bearish candles.
At the moment of signal candle close we place pending buy order at candle high. Together with stop loss at the low of a candle ant take profit that equals the candle range.
We also place pending sell order at the candle low, at the same price as first order stop loss. Again candle range is used both for take profit and stop loss target. For second order , double the amount of first order.
Once the second position opens. We place one last pending order at candle high. This time doubling the amount of second order. Stop loss and take profit placement is the same as with first order.
SELL:
MACD histogram closing below zero. Enter short only.
Minimum of three consecutive bullish candles closed (doji candle may be included).
Extremely wide bearish candle closing below the lowest low of previous bullish candles.
At the moment of signal candle close we place pending sell order at candle low. Together with stop loss at the high of a candle ant take profit that equals the candle range.
We also place pending buy order at the candle high, at the same price as first order stop loss. Again candle range is used both for take profit and stop loss target. For second order, double the amount of first order.
Once the second position opens. We place one last pending order at candle low. This time doubling the amount of second order. Stop loss and take profit placement is the same as with first order.
