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Strategies based on Japanese candles and their formations tend to be among the most profitable in the field of Forex trading, and, of course, thanks to this, they are also among the most popular.
New Forces, is unique that has conquered the whole world. This is exactly what this unique strategy represents, true proof that even very simple strategies can generate high profits over time.
Strategy entry rules (example)
Entering long positions
- Creating an above-average sized rising candle with a relatively short or no top wick
- waiting for a new candle to open
Exiting positions
- Creating an above-average sized declining candle with a relatively short or no bottom wick
- waiting for a new candle to open
How to trade with the strategy
The core element of today's strategy is the so-called power candles, which usually form when the markets have been moving sideways for some time and therefore do not have a clear trend (in some cases, such candles can also form during trend periods). And what does a proper power candle look like? The basics are that it should contain a particularly long (above average) body and little or no wick located above/below the candle's closing price. If the candle meets this (see above - candles in green), then all you have to do is wait for a new candle to open, with which a position is opened (see above - orange horizontal lines) in the direction set by the strength candle. Finally, all that is left is to place pending Stop-Loss (SL) and Take-Profit (TP) orders, where SL is usually placed below/above the opening price of the strength candle (see above - red lines) and in the case of TP, it is up to each individual where they eventually place it.
In the picture below, we have an example of three candles that may resemble a power candle, but this is not the case. This is because, in the first two cases, the candles contain too long a wick sticking out of the closing price and in the case of the last one. However, the candle meets all the requirements, it is the second power candle in the sequence, so it is hazardous to make any entries based on it.
The New Forces strategy can be used in shorter time frames as well as longer ones, where this great and time-tested strategy can achieve success rates exceeding 75%.
