3°Candle Scalping
Time Frame: 5, 15min
Pairs: AUD/USD, GBP/USD, EUR/USD
Rules:
Identify the 3° Candle;
Place a trade at the start of the 3° Candle;
Take Profit at 10 pips or move stop to be at 10 pips;
Use stochastic as filter (9,3,3,)
Identify the first Candle
In order to find the 3° Candle, we need to know where to find the firs candle.
Look at the following chart: The yellow arrow is pointing at the firs candle up or down.
The first candle is located between 2° candles and it is the highest of the 3°.
To The right of the first candle is the second candle. The following candle is the 3°Candle. This candle is very significant, so we buil the strategy on the candle.
The following Chart shows all possible 3° candles. Them are great trade opportunities.
All of them produce more than 10 pips each.
If you understand how to identify the 3° candle, let start trading.
Red (short pointing down) arrows are your 3° candles.
Yellows arrows are your 3° candles. Buy at the start of this 3° candle.
Stochastic
To help better filter trades. Buy at the cross of 20 to the upside and sell at the cross of 80 to the downside. (Setting 5,3,3 or 9,3,3,). The arrows shows the relationship between the stochastic and 3° Candle. A 3° Candle usually appears while the stochastic is crossing either 80 or 20 making these 2 a perfect match.
Take Profit
After you place a trade, you can manage them in 3 wys.
Take 10 pips profit target.
Move stop to break even after 10 pips.
Trail trades at 10 pips or more.
Stop loss
For Long Entry to place stop loss below the 1° Candle.
For Short Entry to place stop loss above the 1° Candle.
