This is a great strategy that is very simple and yet very profitable. We are working on an expert advisor for this method and we will give away to all of our clients when project is completed.
Time Frame: 1 hour
Preferred currency pair: USDJPY (you may use others also)
Indicators: PSAR
Trade Setup
Wait for a bull or bear candle, after it closes bullish or bearish, ITS MOST LIKELY the next candle will form as a bull or bear candle. When it forms 5 pips in the same direction as the first candle we will enter a trade.
See trade example
Bull candle at 14:00 gmt, most likely 15:00 gmt candle will be a bull candle too.
Bear candle at 7:00 gmt, most likely 8:00 gmt candle will be a bear too.
Two Candle Setup - Entry Exit Rules:
1. Best time to trade the USDJPY with this strategy is between 7:00 and 19:00 GMT
2. Long Entry If 1st candle is a bull candle we wait for the 2nd candle to form and go up 5 pips from the opening of the candle. We enter at this point. See trade example here.
3. Short Entry If 1st candle is a bear candle we wait for the 2nd candle to form and go down 5 pips from the opening of the candle. We enter at this point.
4. If the 2nd candle does not form in the direction of the first candle then NO TRADE.
5. PSAR indicator should show the dots below the candle for a long entry or for a short entry the dots should be above the candle. This is a good filter to help you filter out losing trades.
6. Exit the trade at the close of the 2nd candle if it does not hit the take profit which it often does hit.
Note: The best bull or bear candles are ones that are one-sided or ones that have little or no wick. (strong bull/bear candle)
Trading Tips for this method
Enter the market with a certain goal in mind, like 20-40 pips or whatever you need, then stop trading. Not trading in right session, over trading and not having a goal is not good for the health of a trader.
For the new trader, just practice on a demo. Trade with no more than 10% of your demo money, target 20-40pips per day, that is 2-4% gains per day and 40-80% profit per month.
Just imagine if you had a 100,000$ account and you make 40-80% of that per month? That would be making 40-80k per month!
