Reversal Forex Candlestick Strategy
Table of Contents
- 1 Reversal Forex Candlestick Strategy
- 1.1 Forex Indicators:
This system works in all currency pairs and applicable to 4 hour, daily and weekly timeframe.
- CPI, Pattern Recognition Master;
- Stochastic (14, 6,3).
- Using basic Japanese Candlesticks;
- Stochastic must be in the oversold/overbought area (80/20);
4 Major Reversal Candlestick Patterns:
- Bullish/Bearish Engulfing Patterns;
- Bullish/Bearish Harami Patterns;
- Bullish Hammer/ Bearish Hanging Man/Shooting Star Patterns;
- Piercing Line.
The Candlestick bullish patterns are confirmed by Stochastic being in Oversold area.
The Candlestick bearish patterns are confirmated by Stochastic being in Overbougth area.
Entry point will be based on the close of the confirming candle of the trend.
Remember to only enter a trade after you have spotted a changing trend in which it has been confirmed by another candle after the reversal pattern,
and with the Stochastic as a second confirmation.
Stop loss for Long Entry:
- Place your stop loss 20 pips under your entry point or 10 pips below the lowest candle point within the past 4 day period.
Stop loss for Short Entry:
- Place your stoploss 20 pips above your entry point or 2 pips above the highest candle point within the past 4 day period.
Target Profit on daily Pivot; to close position at the closed bar entry.
4H TF: EUR/USD 25 pips, AUD/USD 18 pips, GBP/USD 30 pips, EUR/JPY 30 pips, GBP/JPY 33 pips.
Daily TF:EUR/USD 50 pips, AUD/USD 40 pips, GBP/USD 60 pips, EUR/JPY 60 pips, GBP/JPY 65 pips.
You can also trail stop once it reaches 20 pips target, but it also depends on the currency pair. You will need 10 to 20 pips.
Remove profit target and stop loss if you insert this and allow trail stop to follow as the trend continues.
Forex Trading Strategies Installation Instructions
Reversal Forex Candlestick Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.
The essence of this forex strategy is to transform the accumulated history data and trading signals.
Reversal Forex Candlestick Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust this strategy accordingly.
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How to install Reversal Forex Candlestick Strategy?
- Download Reversal Forex Candlestick Strategy.zip
- *Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex strategy
- Right click on your trading chart and hover on “Template”
- Move right to select Reversal Forex Candlestick Strategy
- You will see Reversal Forex Candlestick Strategy is available on your Chart
*Note: Not all forex strategies come with mq4/ex4 files. Some templates are already integrated with the MT4 Indicators from the MetaTrader Platform.
Click here below to download: