3 Candles – Profitable Price Action Forex Strategy

3 Candles is basically a price action strategy based on the third candle it sues only one indicator and work with the standard Stochastic Oscillator (settings 5,3,3).

The based idea is based on the 1-2-3 pattern trading or and is used to determine short term trend in the form of price pullbacks, presenting an opportunity to grab a few pips on the pullback as price action is momentum trading.

3 candles is exactly what it says, it looks for a 3 candle patterns and presents a buy or sell opportunity. Simple and pure price action based.

The chart timeframe minimum is 5M but we recommend 15m or higher. We were impressed with the price action trading, very good scalping indeed.

Chart Setup

You will need the following which can found in the download file at the bottom of this page :

3rdCandle.mq4
3 Candles.tpl

Chart Timeframes : 5M but 15M is better
Target Pips : 5M 7 pips, 15M 10 pips. (recomended 15 Min)
Pairs : Works on any pair recommend are GBPUSD, USDJPY, EURUSD 
Trading Times : Tokyo Open, London open and New York open is the best time to open the trades, 
Exits : The exit should be based on the indicators and major support and resistance areas
Metatrader Version : 4

3 Candles – Profitable Price Action Forex Strategy
3 Candles – Profitable Price Action Forex Strategy
3 Candles – Profitable Price Action Forex Strategy

How to use the system

Enter the market at the opening of the third candle (following a candle on which an arrow), the Stochastic should be directed towards the open position

If Stochastic Oscillator (5, 3, 3) does not confirm the signal (sent in the opposite direction, or the direction it is not clear) - do not enter the market

If the candles 1 and 2 visually very small, about any impulse cannot speak and, accordingly, do not enter the market.
If the second candle is visually very large and stands out in the chart, do not enter the market
Stop Loss - exhibited several points higher / lower, respectively, point «High» or «Low» first candle.

Take Profit - fixed on a pair and timeframe. But more appropriately dealt with the third candle, as profit and out of a trade for its closure.

Make sure you check all the conditions are correct before entering trades if not don’t enter price action trading is not forgiving.

$5 USD Discount Code

Simply pre-register to our go live list and get a $5 USD discount code for free.

Contact US

Hello *at* Forexkeyboard.com