Strong Candles Theory

Versatile for All Time Frames

Introduction

The Strong Candles Trading System identifies entry points based on the strength of the candle relative to the day's range. This system is suitable for both daily and weekly charts, providing traders with reliable entry and exit points.

How It Works

Setup

Enter LONG if the closing price is above 75% of the day's range and the previous candle has a smaller red body. Enter SHORT if the closing price is below 75% of the day's range and the previous candle has a smaller green body.

Entry

Buy at the day's high (LONG) / Sell at the day's low (SHORT)

Stops

Time Frame

1 week, 1 day

Permanent Filters

Volatility Filter

0.5 % - 2.5 % daily basis

Position Size

1 % of the account volume: Point distance of the initial stop = number of shares

Profit Target

2 R profit target for half of the position

Loss Brake

After 2 consecutive losses, the system is blocked for the applied timeframe. The same block applies to the traded base value.

Note: This system provides clear entry and exit rules, making it suitable for both novice and experienced traders.

System Highlights

Optimizing Your Strategies

Discover techniques to maximize your trading success with our detailed guide on using the Strong Candles System effectively.

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Join Our Community

Engage with other traders and share insights on our dedicated online platform.

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Conclusion

The Strong Candles Trading System is more than a set of rules; it is a comprehensive trading framework that integrates technical analysis, psychology, and rigorous risk management. It equips traders with the knowledge and tools necessary to navigate the complexities of the market, maximizing opportunities while controlling risk. By applying this system, traders of all experience levels can enhance their market presence, making informed and profitable trading decisions.