Top expert traders all over the globe use this system to trade. It generates excellent results on the longer time frames such as monthly, weekly and daily. If used perfectly it can support you earn money.
The initial step in the system is identifying one of 3 unique candlestick patterns. There are over eighteen Japanese candlestick patterns; anyway, we are just interested in the powerful patterns. The solid patterns we are looking for are piercing lines, bullish engulfing patterns, bearish engulfing patterns, and dark cloud cover. Each of these patterns need 2 candlesticks to form fully. The 2nd candlestick is the most vital and it must appear very solid.
Rule 1: The initial thing we need is a powerful candlestick pattern. An order should not be placed unless a powerful candlestick pattern has made.
Rule 2: The next step is the candlestick pattern must have a solid Bollinger band break out of the lower or upper bands. The first and second candle must break out of the lower or upper band powerfully. If the rules are not met the trade set up should be rejected.
So the 2nd thing we need is a very solid lower or upper Bollinger band breakout.
Rule 1 and 2 show a sign which describes that price wants to change. Either to advance or collapse. It only tells us that either the seller (bears) or the buyers (bulls), are getting worried, switching sides, or giving up.
Rule 3: The rules are needs that the solid candlestick pattern should from where neither the bears or bulls do not have complete control over the price. This means one of the parties have become tired in the struggle to control the price change.
So the 3rd thing we need is a mark presenting signs of exhaustion where neither bear or bulls have complete control over the price action.
If you do not have all 3 of these situations it is too dangerous to place an order.
Your stop-loss order is remarkable set at the pervious candles low or high price.
We advise that you practice with paper trading first. No plan is 100 percent right all the time. We are traders not fortune tellers. Anyway, with actual risk management, and a strong exit plan it is easy to become constantly profitable trading in stock and mcx market.
If still worried, you can subscribe to our premium service. All our SMS tip and premium software service uses such highly improved tactics – target and stop loss levels in programs as well as through SMS.
Tags : mcx tips, nifty tips, sms tips, intraday tips, technical analysis software, bollinger bands, candle sticks, japanese candle sticks