Chart is example of a 3 bar reversal pattern A.C.E. Strategy.
1) Alert Candle - Large red candle ( wick to wick or bottom to top of candle)
2) Confirm Candle- Smaller red candle ( doji is a very good sign and candlestick)
3) Enter Candle- Larger blue (green usual) that is larger then Alert candle
When 3rd candle of this three bar reversal pattern hits the open of 1st candle of this pattern- ENTER buy signal for bullish trade.
Place stop loss below this 3 bar reversal pattern, I place them at quarter levels: example (.xx000, xx125, xx250, xx375, xx500, xx625, xx750 & xx877), on Eur pairs and or chart example of EurCad (see chart). The setup would be 1:2 or 18 pip stop vs 39 target. Noted chart stop loss is 1.43125.
Use always right risk management and lot sizes etc... for time frame of chart used and ATR for setting stop losses and targets too.
1) Alert Candle - Large red candle ( wick to wick or bottom to top of candle)
2) Confirm Candle- Smaller red candle ( doji is a very good sign and candlestick)
3) Enter Candle- Larger blue (green usual) that is larger then Alert candle
When 3rd candle of this three bar reversal pattern hits the open of 1st candle of this pattern- ENTER buy signal for bullish trade.
Place stop loss below this 3 bar reversal pattern, I place them at quarter levels: example (.xx000, xx125, xx250, xx375, xx500, xx625, xx750 & xx877), on Eur pairs and or chart example of EurCad (see chart). The setup would be 1:2 or 18 pip stop vs 39 target. Noted chart stop loss is 1.43125.
Use always right risk management and lot sizes etc... for time frame of chart used and ATR for setting stop losses and targets too.