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Forex trading strategy #12 (3 white soldiers / 3 black crows)

Submitted by trader.

Very Simple system - simply look for 1 of 2 candle formations at or near the bollinger band (in this case the default 20)

You are looking for either 3 consecutive bulish candles for a buy, 3 consecutive bearish candles for a sell - that's it!!! - 3 white soldiers / 3 black crows formations

three white soldiers Forex

Things to note. On the larger moves, the price WILL retrace. Best thing to do in this situation is when you see this happen (typically 1 or 2 candles in the opposing direction) simply close the trade and re-enter when the price has returned to the point where the change started. as for exit strategy - a lot of the time you can count on approx 2 - 3 times the value of the retracement (e.g. if the price retraces 10 pips, then you are looking on the re-entered trade of a TP between 20 - 30 pips!

You can use ANY 3 consecutive candles, however this works best when the price has just "bounced" off the Bollinger Bands.

Thanks for this simple trading method. May I ask what is the best timeframe to use? Your example shows "Daily". Is this the best? Also, any pairs better than others? Thanks again.

Thanks will try!!

THanks for your strategy but you did not give the timeframe un which to use it but your example is on a daily chart hope u tell us soon

Thanks for the strategy but you did not say which pair it is best used for and also the timeframe

ANY timeframe
Any pair!!!

I have also found that it works better if it has bounced off a bollinger band

You'll see more successful occasions on daily charts, while on smaller time frames chances for a reverse after 3 consecutive white or black candles will be much higher.

Hi, thanks very much for this sytem, it's very simple but effective. Does it matter which candle hits or breached the Bollinger, for example does it matter if the first second or third white soldier touches or breaches the bollinger? Also, after the third candle has finished as a white soldier, do we just get in with a market order or do you set an entry level order somewhere.Does it matter whether the bollinger has been breached significantly or as long as it has at least touched this is OK?

Thanks in advance

It doesn't matter which candle hits or breaches Bollinger bands. It also doesn't matter how significantly the bands are breached.
Entry is made on the close of the third candle, and it is a market order; or on the breakout above/below the formation.
An ideal entry opportunity is considered to be when 3 consecutive candles formed just after price had bounced off of the Bollinger bands.