Strategy Free candle
Strategy forex trading Free Candle refers to a variety of 15-minute s forex trade system and is perfectly suited for beginners in the Forex market who prefer short-term day deals. Only one indicator, basic knowledge and familiarization with trade recommendations allow anyone to get a small but stable income.
Everyone knows that beginners seem attractive scalping strategy. And if they are able to choose a functioning scalping strategy in a timely manner, traders will have a chance to reach the financial market until they have sufficient experience and knowledge. This strategy forex trading was created for use with common currency pairs on 15-minute timeframes.
Mathematics strategy Free candle and its indicators
The basic idea of the Forex method described by the Free Candle strategy is that it uses standard combinations of analysis that include a high degree of reliability. The Forex direction indicator in this situation is the exponential moving average (hereinafter EMA indicator), at closing prices with a fixed period of 9 (for period M15), and then only analyzing the current location of Japanese candles relative to the moving average.
Which includes the concept of "free candle," which is the basis of the 15-minute strategy described. By this is meant a fully formed 15-minute candle whose body and shadow do not come into contact with the available moving average, while its closing price is above the preceding maximum at upward, or lower at downward, market.
The free candle must have the most usual appearance, it consists of a middle body and a middle shadow. At the same time, standard turning figures, such as "hammer" or "dodge," are not used for technical analysis. It is also necessary to remember that the body of the candle is often long and largely retreats from the middle, and therefore the entrance is dangerous, and most of the signals are better to pass.
Using strategy in forex trading Free Candle in trading activities
For work all most popular currency pairs to which euros/US dollar, dollar of the USA / Swiss franc, the English pound/US dollar and also, the main cross-countries belong are recommended: euro/English pound, euro / Japanese yen, English pound / Japanese yen. Work is preferable within the framework of European or American sessions, as Asian may find a shortage of volatility.
Features of the strategy Free Candle
In the bullish direction, closing prices should be above the preceding maximum, in the bearish direction below the minimum.
To open a long position on a fifteen-minute strategy, you must have a free (white) candle located above the moving average line.
When opening the next candle, it is necessary to enter the market immediately, which is possible to do with a delayed "buy stop" warrant slightly higher than the price at which the preceding candle was closed.
The stop loss should be placed 3-5 points below the minimum of the free candle used for analysis. To reach the "sell," you will need to use a free black candle that is below the moving average level. The stop loss is set to the maximum and transferred to the break-even after the price has passed at least 70% of the foot. The profitability of open items can be calculated according to the general principles of management, but the application of a doubled range of free candle can be much more profitable.
It is important to remember that the 15-minute strategy forex trading Free Candle is only able to give profit if there are standard conditions. It should be avoided in situations of unstable markets.
It is possible to keep an open position on the market as long as the distance from the closing point to the average is not less than half of the free candle.
From practical experience, the following can be noted:
A favorable moment for entry on the main currency pairs is the period coming 15-30 minutes after the European session was opened and the market decided on the choice of direction.
On average, the duration of an open deal is one hour. Work without footsteps is desirable to avoid.
The fifteen-minute strategy in forex trading Free Candle is only trending, and even with a wide flute it is not advised to work with it.
It is possible to test other versions of the fifteen-minute strategy, which has a different EMA period, taking into account that at lower average volatility the moving average is slower as well.
For any of the trading instruments, the transaction should not be opened if the distance from the closing price of the working "free" candle to the EMA (9) is less than 2 spreads (which is less than 3-4 points) or if the body of the "free" candle is less than 10 points.
Often the start of the hour carries a pullback from trending traffic, meaning it is more appropriate to avoid entering during the first quarter of the new hour.
Strategy in forex trading Free Candle trading methodology shows stable results when working with currency pairs, but cannot be used when working with futures.
The effectiveness of this forex trade system is best demonstrated when making reliable deals.