10 pips per trade ~ forex market trading hours
10 pips per trade. 5-10 trades a day. You can use this strategy anytime you want, there are always very strong signals ( I will explain below..) The system will work on many Forex pairs and many major Stocks. The rules to this system are simple, and executing and managing trades will take no more than five minutes of your time. The only tricky part is bringing your knowledge base up to speed with the strategy so this becomes a five-minute process.
Let me introduce you to the four simple steps below. Then I’ll take you through some worked
examples in order to illustrate just how easy this system is.
This trading system involves 3 simple steps.
1. Identify a current trend
2. Identify your entry signal
3. Place your trade
Manage your trade later..
The System
1. Find the third candle
2. Enter your trade at the start of the third candle
3. Close your trade in a few minutes with 10 pips profit.
Below I will show you what to do – step by step.
The system works fine for me on 5 minutes or 15 minutes charts, but it work on other
timeframes as well.
Setup:
-Identify the current trend.
(For example: use 200SMA or 200EMA to identify the current trend. If the price is above the SMA – the current trend is up or opposite)
-Open a 5 min or 15 min and find the “first candle”.“The First Candle” is between two
candles, and it is the highest or the lowest of those three candles.
Look at the chart below:
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| 10 pips per trade |
The 1 st candle is located between two candles and it is the highest (or lowest ) of the 3.
-Now if you look to the right of the 1 st candle is the 2 nd candle and the next is the 3 rd candle –
the most important for us. This system based on the 3 rd candle.
If look on your chart you will see a lot of “three candles figures” and all of them are great
trading opportunities! Usually each trade will brings you 10 pips profit:
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| 10 pips per trade |
Trades
We BUYat the very beginning of the 3 rd candle if the current trend is up and your candles figure is going up.
We SELL very beginning of the 3 rd candle if the current trend is down and your candles figure
is going down.
There is ALWAYS an opportunity to make 10 pips when ever you have time: All you
have to do is to open few pairs charts and you will always find your 3 candles on some pairs!
Take profit
Your target is 10 pips. You can also try to use a trailing stop order to maximize your profit.
Stop loss
Stop loss needs to be placed above or below the second candle: If you BUY – place a stop 1
pip below the 2nd candle, if you SELL – place a stop 1 pip above the 2nd candle.
When not to trade
- do not trade 1 hour before and after major news or big events
- when the 3 rd candle is against the currenttrend
- when the second candle closes “inside” the 1 st candle:
You may also use a Stochastic indicator with parameters 5.3.3 to filter your trades. If the
direction of the stochastic is opposite of your 1 st and 2 nd candles it is better not to trade at that
moment and wait for the next “1 st candle figure”.
Time frames
This system can be used with higher time frame. In this case make sure to set your take profit
target more than 10 pips.
Pairs and stocks
This system will work on all major pairs and Stocks. Try EUR/USD GBP/USD..
Money management
Do not trade for more than 3-5% of your deposit (per trade)
Stock trading
Exactly the same method “3 candles” can be used for Stock trading. It works in the same way and
with the same rules.
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