This forex strategy is based on black crows and white soldiers classical candle signal. In order for it to work in twenty first century, some modifications needed to be done. MACD filter was added, to ensure that the signal is taken on the right side of the market.
Strategy was tested with hundred of different settings to find out, that it works best in 4H timeframe. Taking just about 3 trades per month with success rate of about 60 percent. Which is relatively small for strategy where stop loss equals take profit.
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Used indicators
Bollinger bands (60). BB is standard used to draw a volatility dependent tunnel. Breakout of either upper or lower line is considered to be a breakout, only if breakout candle is preceded by two consecutive candles in the same direction.
MACD (moving average convergence divergence) Only histogram (250,120) is used. MACD trending below zero – only short trades allowed, trending above zero – enter long only.
Candle signal. Classical 3 black crows/white soldiers candle signal. Third candle of the formation mus close outside BB tunnel boundaries.
Apply all indicators in 4 chart of EURUSD
Forex strategy rules
SELL:
MACD 250,120 histogram trending below zero.
Three consecutive bearish candles. Third candle of the formation closing below 60 BB bottom line.
Trade entry on next candle open.
Stop loss: High of the first candle in the formation.
Take profit: distance between low and the high of the formation.
BUY:
MACD 250,120 histogram trending below zero.
Three consecutive bullish candles. Third candle of the formation closing above 60 BB upper line.
Trade entry on next candle open.
Stop loss: Low of the first candle in the formation.
Take profit: distance between low and the high of the formation.
We recommend you to use this forex strategy with one of our trusted forex brokers (STP/ECN with MT4 bridge).
To win you must trade with broker on your side.
Dislaimer: Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer.
TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use.
