This forex strategy works very well in 4H and 1D time frames. It identifies trend on two levels. Then it looks for two consecutive candles with specific size range, closing in the direction of the trend. Third candle surpassing the previous candle will trigger the trade entry.

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Once we enter the trade, advanced trailing stop takes care of our position liquidation. This step ensures that we let the profits roll while protecting them (take profit may be also used). Strategy is relatively simple and fundamentally robust. It is provided together with expert advisor, for you to be able to test it under the various circumstance (time frame, currency pair, signal candle size, moving averages period).
Used forex tools and indicators
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Moving averages (EMA 1000,500 and 500,250 -doubled). We will use 4 moving averages in two tandems. Both tandems are working independently with different calculation period. The main advantage of this approach is ability to indicate cycle end faster and filter out some of the trend corrections that might be unsuitable for entry.
Two signal candles: Two candles with specific min/max size closing in the direction of the trend. Those are perceived as immediate momentum indicator. Entry is triggered by third candle surpassing the previous candle and closing in the direction of trend (trend continuation).
Trailing stop (extra distaance 100 pips). Adjusted after each candle close. Placed either above or below candle high/low, depending on trade direction.
Take profit (130 pips): Take profit is used to maximize results. It is based on hard data evidence that revealed benefits of its placement.
Forex strategy rules
SELL:
In both EMA tandems, faster EMA is trending below its slower counterpart. This will be interpreted as downtrend suitable for our entry signal.

Signal:
Two bearish candles, both with range from 10 to 200 pips
Third candle closes below the low of second candle.
We enter on third candle close, placing trailing stop above its high + 100 extra pips.
Trailing stop is the only one method of position liquidation. Take profit is also placed in distance of
BUY:
In both EMA tandems, faster EMA is trending above its slower counterpart. This will be interpreted as uptrend suitable for our entry signal.

Signal:
Two bullish candles, both with range from 10 to 200 pips
Third candle closes above the high of second signal candle.
We enter on third candle close, placing trailing stop below its low - 100 extra pips.
Trailing stop is the only one method of position liquidation. Take profit is also placed
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Disclaimer: 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.