Have you ever noticed that there are there are days when the candlesticks on your charts get very short? This is what we are looking for, a loss of momentum, a slowing down of the market. It can happen in 1hr timeframe up to the weekly and monthly. The third shortest candlestick is the third shortest candlestick from the 2 previous candlesticks before it. This means the 2 previous candlestick should be long: When I say short, I mean unusually short or extremely short and this depends on the timeframe you are viewing the candlestick in as well.
Whatever candlestick that is unusually short in comparison to the the first 2 candlestick is the one you are interested in. Look at the chart on the right. Notice that there is no logic or order in picking where to start your count 1. You can start anywhere. Note also how the trailing stop is use on this trade. You are trailing it behind the high of each candlestick that continues to make lower highs.
Remember also that your third candlestick can be an inside bar too. Mail will not be published required. Third Shortest Candlestick Forex Trading Strategy Have you ever noticed that there are there are days when the candlesticks on your charts get very short? Soon, the market starts to slow down and this is reflected by the length of candlestick becoming very short Difference between the High and Low becomes small.
So how do you trade this? Well, you do this by looking for the third shortest candlestick. Yep… third shortest candlestick, you heard me right. So how do you pick your first candlestick then? This shortest 3rd candlestick is your trade entry signal candlestick.
Any third candlestick that is extremely short is your signal candlestick. Place pending stop orders on both sides of the shortest candlestick. This is to capture the breakout in any direction price moves. How do you place take profit target? For example, if you risked 20 pips than set your take profit target at 60 pips price level. Or you tail stop your trades, locking profit, placing it under the low for a buy trade or under high for a sell trade. Or you can exit after the 3rd candlestick after entry.
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