Trading systems based on technical analysis, whether it is analysis based on trading indicators, candles and various calculations, are among the most popular trading methods because everything traders need is always at hand and they do not have to search for anything extra.
Profiting from quick big changes also falls into the category of trading systems based on technical analysis, where the core element is the time candles, which ultimately determine whether the moment to trade has already come or not.
Trading systems based on technical analysis, whether it is analysis based on trading indicators, candles and various calculations, are among the most popular trading methods because everything traders need is always at hand and they do not have to search for anything extra.
Profiting from quick big changes also falls into the category of trading systems based on technical analysis, where the core element is the time candles, which ultimately determine whether the moment to trade has already come or not.
Strategy entry rules (example)
Entering long positions
-creating a very large descending candle on the H1 chart
Entry into short positions
-creating a very large rising candle on the H1 chart
How to trade with the strategy
The strategy is based on waiting for the moments when the markets are hit by fast and strong moves (see chart above/below - candles highlighted in red), on the basis of which the corrections that the strategy is trying to take advantage of normally occur afterwards.
You can see in the chart below that sometimes a really strong move will occur that can create two or more very long candles, which can either be dealt with by multiple entry or simply not entering further positions at all.
With today's strategy, it is even possible to achieve success rates in excess of 70% on some currency pairs, but usually this will be in the range of 50-60% over the long term, which is also fully sufficient to achieve long-term sustainability.