Pro Trader 80-20 Strategy

The 80 – 20 Trading Strategy
The basic idea behind this pro trading strategy is around a simple chart price formation. Particularly, a candlestick bar with a long body and small wicks. Usually, these types of candlestick patterns signal a market reversal. However, there are some price characteristics that need to confirm the reversal signal.

Here are the pro rules:

The body of the candle must take at least 80% of the total candlestick size.
The wicks of the candle must constitute less than 20% (ideally 10% on each side).
Today candle must open 5-15 ticks below (above) the momentum candle (this is meant as a guideline).
Once the market breaks above the momentum candle low you buy.
Stop-loss can be placed below today’s candle low.
Take quick profits as this is a scalping strategy (don’t expect large profits from this chart pattern).
Note* This strategy works best in the futures market, but if you’re a smart trader you can work out some variation of it to make it work on your favorite market be it stocks, forex, or cryptocurrencies.