To Make The System More Profitable, Exit in The Following Manner:
We place our Sell order 1 pip below the Low of the 3:00 Red Candle at 1.5521
The Next Candle the 4:00 candle opens below the close of the Red Candle, goes down and on its way down our order gets filled in at 1.5521
The Candle then retraces and starts going up again, even beyond the close of the Red Candle, comes down and closes as a Doji.
Because it closes below the close of the Red Candle, we assume that the next candle will open below the close of the Doji and so it does, goes up a bit and then all the way down.
Once it closes we would exit if the next candle opens 1 pips above the close of this candle, but the next candle the 6:00 candle opens below the previous red candle, so we stay in the Market.
Then the 7:00 Candle also opens below the close of the 6:00 candle, goes down and then reverses back and closes as a Blue candle.
We Exit at the close of the Blue Candle with a Profit of 56 pips.
ENTRY RULES:
Wait for the Candle to close.
Observer the colour of the Candle, the High and Low of the Candle and the MACD Histogram Bar.
1) If the Candle closes as a Red candle and the MACD Histogram Bar is also confirming to go short then we shall place a sell order one pip below the low of this Candle.
If the MACD Bar is not confirmatory,we do not trade.
2) If the Candle closes as a Blue Candle and the MACD Histogram Bar is also confirming to go Long then we place a Buy order one pip above the high of this candle.
If the MACD Bar is not confirmatory,we do not trade.
EXIT RULES:
IF YOU ARE SHORT
Once your order gets filled in, wait for the candle to close and observe where the next candle opens.
If the Next Candle opens one pip above the close of this candle, Exit immediately.
If the next candle opens below the close of this candle then stay in the market as its likely that the Market will continue going down and if after opening one pip below this candle, the market goes up again, then exit as soon as it goes one pip above the close of this candle.
Sometimes after filling in your Sell order, the Market may go up against you. In that case Exit at the close of this candle with a loss.
IF YOU ARE LONG
Once your order gets filled in, wait for the candle to close and observe where the next candle opens.
If the Next Candle opens one pip below the close of this candle, Exit immediately.
If the next candle opens above the close of this candle then stay in the market as its likely that the Market will continue going up and if after opening one pip above this candle, the market goes down again, then exit as soon as it goes one pip below the close of this candle.
Sometimes after filling in your Sell order, the Market may go up against you. In that case Exit at the close of this candle with a loss.
• We do not incorporate stop losses as at the most you will come out with a small loss however if you would like to use a stop loss you may set it to 50 pips away from entry. At the point of entry you may add your broker spread which should be 2 or 3 pips at the most.
• Do not place an order if the previous closing candle has a long spike or a larger than average range.
• Do not to place an order just before the news unless you possess the "News FX Strategy" and you are trading in conjuction with the News.
I am trying to improve the system. Form time to time you will see some more improvements in the system. So please visit this page regularly to see what changes and improvements have been made.
All The Best
HOW TO MAKE THE SYSTEM MORE PROFITABLE
If you use your own discretion and aim for only 10 pips profit on each candle that you are trading, you could achieve 50 to 100 pips daily.
Instead of waiting for the candle to retrace and close, just take 10 pips profit.
This way you would be able to extract a minimum of 50 pips daily.
This amounts to more than 1000 pips a month.
BEST TIME TO TRADE
Although the Market is open 24 hours a Day the best time to Trade is from 4:00 Eastern Time to 17:00 Eastern Time. This is when the London Market opens and the New York Market Closes. This will save you from most of the False Signals and you will get more Profitable Trades.
Recently it was found that its best to trade from the 4:00 Candle till the 11:00 candle. These are the candles where you will get good moves. This will reduce your trading time to 7 hours only.