Short setup Once the price prints two red consecutive candles after a series of green candles, the uptrend is exhausted and the reversal is likely. The honest truth of the matter is this, most new traders get involved because they see huge profits straight ahead by simply clicking BUY. After many years of using these tools, I can say with confidence, they are pretty accurate. The strategy uses a few indicators only: Stochastic Oscillator ( multi-time frame support and resistance, fibonacci retracements. To define the price reversal you need to analyse the price on daily charts first and answer 3 simple questions: Has the market been clearly falling or rallying recently?
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Filters The raw candle formation is not enough to make this day trading strategy valuable. Dont enter the market straight after a volatile price swing to one direction. On the chart above I have circled in green four separate signals that this moving average crossover system has generated on the eurusd daily chart over the last six months. These levels are probably the most important concepts in technical analysis. The trade would involve selling when the first 85 bitcoin in euro chart candle moved below the contracting range of the previous few candles, A stop could be placed at the most recent minor swing high. On each of those occasions the system made 600, 200, 200 and 100 points respectively. Lets see how can you use it in your every days trading.