Worldwide best professional traders use this system to trade. It
works on any time frame, but produces better results in longer, such as daily,
weekly and monthly periods. If used properly, it can help you make money.
The first step in the system is the identification of one of three
specific patterns of candles. There are more than 80 candlestick patterns;
however, we are only interested in the strongest patterns. Strong patterns we
are looking for are dark cloud cover, bearish engulfing pattern, bullish
engulfing patterns and sharp lines. Each of these patterns need two
candlesticks to form completely. The second candle is the most important and
must appear strong.
The first thing we need is a strong candlestick pattern. An order should not be placed unless a strong candle stick pattern has been formed.
The second step is the candlestick pattern must have a strong
Bollinger band break out of the upper and lower bands. The first and the second
candle has to come from the top or bottom band strength. If trade rules laid
down are not met it should be ignored.
The second thing we need is a strong breaks higher or lower Bollinger band.
Rule one two show a sign indicating the price you want to change.
Either to enter or advance. It only tells us that either buyers (bulls) or
sellers (bears) are getting tired, resign or switch sides.
The rules also require the strong candle stick pattern must form
were no bulls or bears do not have total control over the price. This means a
party have been exhausted in the struggle to control the movement of prices.
The third thing we need is a market showing signs of exhaustion where neither bulls or bears are in full control of the price action.
If you do not have all three of these conditions is too risky to
place an order.
Using this system Bollinger bands can be expected to trade five
times in a month. You can set the take profit order to ten times its stop-loss
order. Your stop-loss order is set to the previous candle high price or low.
I recommend you practice on a demo account first. No strategy is
one hundred percent right all the time. We are not traders soothsayers.
However, with proper risk management and solid exit plan it is possible to
become consistently profitable market currencies.