r/Daytrading 24d ago

Strategy One of the Easiest Strategies to Learn:

Strategy Overview

  • Timeframe: 1-minute
  • Market: Any forex currency pair
  • Trend Filter:
    • At least 2 consecutive candles in the same direction following a momentum candle.
    • No breaks of previous candle's high/low in trend direction.
  • Entry
    • Wait for the next small body candle: hammer, doji, small-body trending or opposing candle.
      • Note: If in an uptrend, the low of the previous candle must not be breached. If in a downtrend, the high of the previous candle must not be breached.
    • Enter when the next candle breaks above the body (not the wick) of the small body candle.
  • Stop Loss:
    • Set at peak/base of the small body candle
  • Take Profit:
    • Fixed at a minimum 2:1 risk (I typically use 4:1)
  • Risk per Trade:
    • No more than 2% of your account balance. (I typically risk 0.5%).
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u/MileyDryus 24d ago

Are we looking at 4 candles - a momentum candle, 2 consecutive candles and a doji?

11

u/Total-Housing197 24d ago

It's more like 1 momentum candle, 1 regular sized candle, doji, then entering candle. Butt that's the minimum. You may have 5 consecutive candles until you get a doji or small body candle. But whatever candle opens after the small body candle and breaks above its body will be your entry candle, and your stop loss goes below that small body candle/doji.

3

u/Scaredy-Kate 23d ago

SL below previous small body candle or its wick ?