Candles technique

by Admin on Thu Feb 07, 2008 8:53 pm

I called this technique as Candle, because it relies on the candles. It is so easy; Open the 1 hour chart for a specific currency let's say EUR/JPY,

1 - If the current Candle CLOSED Price > Previous Candle OPEN Price

2 - Open EMA 8 , EMA21 and EMA 55 in the Chart, If EMA8 > EMA21 >EMA55

3 - If the trend is Strong (ADX is UP and ADX > 15)

4 - If the +DMI is Up and -DMI is Down

If these indicators are True then it is a buy signal. You can set target = 25 pips or close the trade If the current Candle CLOSED Price < Previous Candle OPEN Price. And you can set your Stop Loss = -40.

The Sell signal = NOT(Buy Signal)

Joseph Chalhoub