FREE DOWNLOAD Forex 3rd Candles Trading — Simple profitable short-term bullish bearish candles strategy.

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- Use a demo account or a small live account first to practice this trading system
The 3rd Candles trading strategy is very simple.
The principle 3rd Candle trading strategy is based on the pattern 1-2-3 of trading system Price Action, the essence of which is to determine the short-term change in the direction of price movement, giving us the opportunity to open a position in the direction of the momentum and take a small profit.
Pattern 1-2-3. In this illustration, the first candle – is a candle at which point the «High» and point «Low» are above points «High» and «Low» two neighboring candles left and right.
Right candle (candle 2) is confirming, and as soon as she closed it can be argued that the pattern can be has been formed and enter the market.
Enter the market at the opening of the third candle, which will be our profit:
Identify the current trend. (For example use 50EMA and 100EMA to identify the current trend. If the price is above the SMA – the current trend is up or opposite).
You may also use a Stochastic indicator with parameters 5.3.3 to filter your trades.
If the direction of the stochastic is opposite of your 1st and 2nd candles it is better not to trade at that moment and wait for the next “1st candle figure”.
- Best TimeFrames: H1, H4, or Daily chart
- Most Recommended Currency Pairs: EURUSD, GBPUSD, USDJPY, AUDUSD, all major pairs
- 50EMA > 100 EMA
- Stochastic Oscillator (5, 3, 3) uptrend
- The candles 1 and 2 visually bullish
- Enter the market at the opening of the third candle
- 50EMA < 100 EMA
- Stochastic Oscillator (5, 3, 3) downtrend
- The candles 1 and 2 visually bearish
- Enter the market at the opening of the third candle
Stop loss needs to be placed above or below the second candle:
- If you BUY – place a stop 1 pip below the 2nd candle,
- If you SELL – place a stop 1 pip above the 2nd candle.
Make sure to set your take profit target more than 200 pips (5 digits brokers)