in strongly trending markets, however during market consolidations it can lead to significant losses. But that is a topic for another post. At some point, it is helpful to switch to candlestick charts, since line charts will not always show us how far the wicks of candles reach. Just follow the trading instructions listed below. We want to see price meet up with one of our Fibonacci levels and confirm with our stochastic oscillator. The 3 line break charts can be used to identify the dominant trend and then the candlesticks are used to time trade entries. Take a higher timeframe line chart and when it points down, and your lower timeframe line chart points down as well, try to get in on a 1-2-3 or 2B pattern, and you have a (obviously discretionary) winning strategy. In summary: Look for M and W chart patterns on the 4H charts Before entering, look at the following:.
As mentioned earlier, the two.
Look back at the line break charts from earlier, we see that this can be quite an effective strategy in strongly trending markets, however during market.
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It was intended to find out whether 3 line break charts can be a useful part of a trading strategy. In order for us to determine whether to enter, the stop loss and the take profit, it can be useful to switch to candlestick charts. Your risk should be set with an eye towards a percentage of your trading capital. I have also not filtered trade entries by time of day. The take profit level could also be determined based on the relative strength of the level of the nose. Then, I will calculate my position size in a way that I wont risk more than 1 of my account balance.
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