The idea is to trade the end of every significant correction on
EURUSD
M5.
- Trading Logic. We're searching for particular pattern - in uptrend
three we need three bearish candles followed by two bullish candles.
Once we have them it is a buy signal. Respective in downtrend - we
need three bullish candles and two bearish after them. I use this
pattern to find the end of the the correction.
- Description of indicators. The only used indicator is 90 periods
EMA
on M5. I use it to determine the trend and to filter the signals.
- Explanation of chosen settings. This is one timeframe strategy.
Only
M5 is used. EURUSD only. I selected this pair as most liquid. As the
strtegy works on M5 the Take Profit 5 pips. The Stoploss is set to
500
pips to avoid needless stopouts, but the actual stoploss is
time-related. If the take profit (5 pips) is not hit in three days
the
position is closed automatically.
- Method of trade volume calculation - The volume is constant - 6 mio.