master candle strategy explained

🔸The concept of the Master Candle is well known in trading. There are different ways of looking at this trading strategy, but in its simplest form, a Master Candle is a candle which contains the highs and lows of at least the next four candles after it.

🔸Can be applied to forex, gold , oil , crypto, stocks and indices.

🔸simple rules to enter the trade based on the breakout of high/low.

🔸Master candle setup is confirmed once 4 or 5 candles are traded inside
the range defined by master candle high and low.

🔸The Master Candle trading strategy provides clear pattern and also helps in the identification of breakout points.

🔸You should not try to trade near a Support / Resistance (SR) zone.

🔸There should be no trade against a Support / Resistance zone that is closer than the Master Candle’s height.

🔸Only take a trade when a candle breaks the Master Candle’s High or Low.

🔸It is recommended to always target the Master Candle size when exiting the trade. So, for example, if the Master Candle size is 80 pips, consider setting your profit target at 80 pips.

🔸Place your Stop-Loss order in the opposite direction of the entry at the other end of the Master Candle. So, in a long trade, the stop should be at the Master Candle’s low, while in a short trade the stop should be at the Master Candle’s high.

評論:

harmonic patterns overview part one

評論:

reversal technical patterns overview part one