Free candlestick strategy

Forex free candlestick strategy refers to a variety of 15-minute systems and is perfectly suitable for beginning Forex market participants, who prefer short-term daily deals.

Only one indicator, basic knowledge and trade recommendations awareness enable anyone to get a small but stable income.

Everyone knows that the scalping strategy seems attractive for beginners. And if they manage to find a functioning scalping strategy traders will get a chance to reach the financial market before they have enough experience and knowledge. This Forex strategy was created for use in dealing with common currency pairs on 15-minute timeframes.

Mathematics of free candlestick strategy and its indicators

The main idea of ​​the described method of Forex free candlestick strategy is that it uses standard analysis combinations that involve a high degree of reliability. Indicator Forex direction in this situation is the exponential moving average (hereinafter referred to as the EMA indicator), at closing prices with a fixed period of 9 (for the period M15), and only further analyzing the currently available Japanese candlestick position to the moving average.

What does the concept of “free candlestick”, which underlies the described fifteen-minute strategy, include. Hereby we mean fully formed 15-minute candle, which body and shadow do not come into contact with the existing moving average, while its closing price is higher than the previous maximum when it is rising, or lower in the descending market.

A free candlestick should have the most usual appearance, it consists of a middle body and an average shadow. In this case, standard reversal figures, such as “hammer” or “doji” for technical analysis are not applied. It must also be remembered that the body of the candle is often long and largely deviates from the average, and therefore the entrance is dangerous, and most of the signals are better to be missed.

Use of forex free candlestick strategy in trading activity

For work we recommend all the most popular currency pairs, which include the euro / US dollar, US dollar / Swiss franc, British pound / US dollar, and also major crosses: euro / pound, euro / Japanese yen, pound / Japanese yen. It is preferable to conduct work in the framework of the European or American sessions, since there may be a lack of volatility in the Asian session.

Features of the free candlestick strategy

1. If the bullish direction of the closing price should be at a level above the previous maximum value, with the bearish – below the minimum.
2. To open a long position in the fifteen-minute strategy you must have a free (white) candlestick, located above the moving average line.
3. When you open the next candlestick, you must immediately enter the market, which can be done with the help of a pending stop-buy order slightly higher than the price at which the previous candlestick was closed.
4. Stop-loss should be placed 3-5 points below the minimum of the free candlestick used for analysis. To get to the “Sell” you need to use a free black candlestick, which is located below the moving average. The stop-loss is set to the maximum and is transferred to the breakeven after the price has passed at least 70% of the stop. The profitability of open positions can be calculated in accordance with the general principles of management, but using a double range of a free candlestick can be much more profitable.
5. It is important to remember that the 15-minute Forex free candlestick strategy is able to give a profit only under standard conditions. It should be avoided in situations where there is an unstable market.
6. Hold an open position on the market is possible as long as the distance from the point of closure to the middle is at least half of the free candlestick.

Based on practical experience, we can note the following:

• The favorable moment for entering the main currency pairs is the period after 15-30 minutes after the European session was opened and the market decided on the direction.
• On average, the duration of an open deal is one hour. It is advisable to avoid work without stops.
• Fifteen-minute Forex free candlestick strategy is only a trend, and even with a wide flat it is not advisable to work with it.
• It is possible to test other variants of the fifteen-minute strategy, which has another period of EMA, taking into account the fact that with a lower average volatility, the moving average is also slower.
• With any of the trading instruments, the transaction should not be opened if the distance from the closing price of the working “free” candlestick to EMA (9) is less than 2 spreads (which is less than 3-4 points) or if the body of the “free” candlestick less than 10 points.
• Often one hour is followed by a pullback from the trend movement, which means that it is more correct to avoid entering the first quarter of the new hour.
• Forex Trading free candlestick methodology shows stable results when working with currency pairs, but can not be used when working with futures.

The effectiveness of this system is best manifested in the conclusion of reliable transactions.