Forex trading strategy #12 (3 white soldiers / 3 black crows)
Submitted by User on May 26, 2009 - 19:32.
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
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.