We present to your attention the Forex strategy 3 Bar Buy - Low Set Up which trade is based on opening of transactions on a trend, and also is applied the analysis of candles.
To trade on this strategy it is necessary:
1. To install the EMA(Moving Average) indicator from the section "Trend"
of red color with a period 50.
2.To install the indicator ADX also from the section «Тrend»
with a period 14. We do the main line of blue color, +DX of green color and -DX of red, as shown in drawing below.
3. To install the Q2MA indicator from the section "For Scalping".
with standard settings.
And all indicators at the chart will look like that:
Necessary conditions for opening of the transaction on Buy:
1. To be asured that a trend is up, it is necessary that the price was above our moving average. And in too time the +DX line of the ADX indicator was above a horizontal mark 25, and crossed the line -DX from below up, as shown in drawing below.
2. After that it is necessary for us that there was a correction from at least 3 descending candles, and at each the minimum shall be lower than previous. The last candle can be considered as alarm.
3. After closing of this candle on its maximum it is necessary to set the postponed warrant for purchase, as shown at the pic below.
4. The maximum loss (Stop loss) should be set slightly below a minimum of our alarm candle, and the maximum profit we should hold until there goes a trend and until we are closed on a traling stop.
We wish you success and high profit.
It is possible to discuss this strategy at a forum