Best Candle Formation for 5 Minute Scalping — Transcript

Full transcript

1. 0:00my absolute most favorite hands down the
2. 0:04best candlestick formation that i trade
3. 0:06and i've been trading it for years is
4. 0:09the three line strike so in this video
5. 0:11i'm gonna teach you all about the three
6. 0:13line strike and how efficient it is and
7. 0:15what it actually means to trade a
8. 0:17three-line strike
9. 0:19[Music]
10. 0:21welcome back to the channel everybody my
11. 0:23name's artie and this is the moving
12. 0:25average a show where we discuss
13. 0:26everything day trading to keep you
14. 0:28profitable what is the number one rule
15. 0:30of day trading come on say it with me
16. 0:32the trend is your friend when price is
17. 0:35trending in a certain direction it will
18. 0:37always retrace a little bit and then
19. 0:39continue in that direction how do you
20. 0:41know when that retracement is over it's
21. 0:44usually a three-line strike a three-line
22. 0:46strike is depicted like this three
23. 0:49candles in one direction faking out the
24. 0:52move and then one big candle engulfing
25. 0:55down or up that is a trend continuation
26. 0:59move i'm going to keep this video under
27. 1:01five minutes so that you guys can get to
28. 1:03trading as soon as possible on a demo
29. 1:05account with this and then move to a
30. 1:07live account all right
31. 1:09new trends usually start with a massive
32. 1:13huge moving candle this candle right
33. 1:16here was about 25 pips this is a
34. 1:20momentum moving candle the previous
35. 1:22trend was an uptrend this candle right
36. 1:26here broke that trend which subsequently
37. 1:29made it lose its market structure
38. 1:32preventing it from making higher highs
39. 1:34and higher lows and the next high was a
40. 1:36lower high thus meaning a new trend is
41. 1:39forming if you simply took
42. 1:42every single three line strike now this
43. 1:46is on a five minute chart we have one
44. 1:48two three four five six seven eight
45. 1:53three line strikes let's put two more
46. 1:56trades up and we can't take that last
47. 1:57one because it goes against the rules
48. 2:00which i will explain in just a minute so
49. 2:02within 14 hours and 20 minutes
50. 2:05trading with the trend only getting
51. 2:08three line strikes you had one two three
52. 2:11four five six seven eight profitable
53. 2:14trades every single one of these trades
54. 2:16entered at the close of a three line
55. 2:19strike with a 10 pip stop loss and a 20
56. 2:22pip take profit so if you risk 1 of your
57. 2:25account for a 2 gain that means that in
58. 2:2914 hours you could have gotten 16 profit
59. 2:33on your account in less than one day
60. 2:35during this entire thing you can see
61. 2:38that market structure was never broken
62. 2:42it continued to make higher highs and
63. 2:45higher lows once it got to here it broke
64. 2:49market structure that right there is the
65. 2:52end of a trend now just for reference i
66. 2:54would not take every single one of these
67. 2:56trades because i strictly trade london
68. 2:59session london open starts at 9 00 a.m
69. 3:01london time i'm on the charts around 6
70. 3:04a.m london time so from 6 a.m till 10
71. 3:07a.m that is my trading window this is
72. 3:10just an example of all of the trades
73. 3:12that happened during this trend the
74. 3:13reason this trade took so long is
75. 3:16because of low liquidity during asian
76. 3:18session or tokyo session so what you're
77. 3:21looking for
78. 3:22is three bullish candles and one bearish
79. 3:25candle enter on close of candle 10 pip
80. 3:28stop loss 20 pip take profit second
81. 3:31entry right here
82. 3:32three candles up one candle down enter
83. 3:35it close of candle ignore three line
84. 3:37strikes in the opposite direction of a
85. 3:39trend you are only trading with the
86. 3:40trend with this strategy three candles
87. 3:42up one engulfing candle down enter trade
88. 3:45at close of candle always wait for close
89. 3:48of candle do not get in early don't
90. 3:50force a trade three candles up one
91. 3:52engulfing down enter again and again and
92. 3:56again and again this last one right here
93. 3:59i would not take because that engulfing
94. 4:02candle is too big for my liking i like
95. 4:04it to fit within 10 pips this one candle
96. 4:08was 11 pips which means my stop loss
97. 4:11would have to be up here which is a 15
98. 4:13pip stop loss which i'm uncomfortable
99. 4:15with when it comes to scalping because
100. 4:17then i'm looking for a 30 pip move which
101. 4:19i know is harder to get than a 20 pip
102. 4:22move so market structure was broken
103. 4:24right here so we are looking for the
104. 4:27next uptrend right now we are looking
105. 4:30for bullish three line strikes we only
106. 4:33got one during this uptrend before it
107. 4:37broke market structure and failed to
108. 4:40make higher highs which means we are now
109. 4:42looking for a downtrend because the
110. 4:45market is cyclical enter
111. 4:4810 pip stop loss 20 pip take profit and
112. 4:51you keep on doing this depending on what
113. 4:54the trend is doing if it breaks market
114. 4:57structure you are looking for the
115. 4:59opposite trend now this is not an end
116. 5:02all be all 100 winning strategy because
117. 5:06as you can see here with a 10 pip stop
118. 5:09loss and a 20 pip take profit
119. 5:12you got stopped out right here but then
120. 5:15you got another entry right afterwards
121. 5:1810 pip stop loss and a 20 pip take
122. 5:22profit then you got stopped out again as
123. 5:25the market failed to continue the trend
124. 5:28breaking market structure and now you're
125. 5:30looking for uptrend so then you will
126. 5:32only take the bullish three-line strikes
127. 5:36until that market structure is broken
128. 5:38this consistently gets me a 70 to 75 win
129. 5:42rate when i trade during my market hours
130. 5:46if you back test this throughout every
131. 5:49single session and get a hundred back
132. 5:51tested trades in you will see which
133. 5:53session it works the best on and which
134. 5:55currency pair you prefer i like
135. 5:58australian dollar and us dollar as well
136. 6:00as gbp usd i talk about three line
137. 6:04strikes in like 35 to 50 percent of my
138. 6:08videos
139. 6:09it is my end-all be-all favorite way to
140. 6:11trade so if you guys want to try this
141. 6:14you know exactly what to do watch this
142. 6:16video five six fifty-five times whatever
143. 6:19you prefer get this in your head follow
144. 6:22market structure when the structure
145. 6:24breaks look for a new trend it's going
146. 6:26to be a short trend or a long trend just
147. 6:28keep trading that trend until the market
148. 6:31structure is broken then look for the
149. 6:33new trend and follow those three line
150. 6:35strikes in either direction if you guys
151. 6:38enjoyed this video and you like the way
152. 6:39that i teach i would really appreciate a
153. 6:41big fat thumbs up on this video it helps
154. 6:44me a lot and keeps me motivated to make
155. 6:46more videos for you guys and if you want
156. 6:48to learn more about this 5-minute
157. 6:49strategy click this video right here and
158. 6:51we will see you in the next one