Forex trading system “3Bar Pattern Trading System”
This system is based on a 3-bar pattern. Patterns are frequently repeated combinations of bars on technical analysis charts. The 3-bar pattern is the most common. On small timeframes it can give many false signals, so its use should be limited to at least hourly charts. The best results are obtained on the daytime timeframe. The system is applicable to all currency pairs. In order to trade with this system, it is necessary to learn to recognize patterns.
There are two types of 3-bar pattern in this figure. Classic piece on the left with the third candle closed above the maximum of the second one. A more reliable signal on the right with the third candle closed above the first one. You also have to take into account where the pattern is. If it is formed after a strong movement, it is a more likely signal than the one that appears in the flute.
In this system the pattern we need finds a special indicator “3BP”. However, it must be used with caution. First, we should analyze where the pattern is and how it looks. Then view the filter indicator readings. In the system “3Bar Pattern Trading System” the oscillators “Real MACD” (5, 15, 1) and “Stochastic” (5, 3, 3) are used for this purpose. They are located in one lower window of the terminal.
This picture shows a sample purchase after the “3Bar” pattern appears. The deal can be aggressive when the green arrow appears and the Real MACD line has not yet crossed the zero line. However, in any case, the “Real MACD” bar should be green and the “Stochastic” lines should be turned upwards. Buying at the opening of the next bar after the shooter. We set the stoploss 10 points below the minimum entry bar.
And here’s an example of a sale. It’s not a typical downward exit from flute movement. After the red arrow appears, we wait for the red bar to appear and sell it. The “Real MACD” is below zero line and the “Stochastic” is directed downwards.
The takeprofit in this system is set at three times the stop loss level in points.
When working with any system, care must be taken to ensure safety. This safety can only be ensured by adjustable brokers.
Download system files.