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Impulsive Candle Strategy

The Impulsive Candle Strategy by Forex Probabilities works in conjunction with the Impulsive Candle Indicator. The Impulsive Candle Strategy is a low risk, high reward strategy that can pick and manage multiple trades on a single currency pair. The strategy is simple;

  1. Look for Impulsive Candles having a long body from High to Low, or Low to High, and short wicks that fall within a preset range.
  2. Compare this candle to the previous accumulation candle and qualify it using relative sizes, Market Flow, MACD and/or Trend Bias.
  3. Place 2 Entry Limit orders at the Low/High of the previous accumulation candle.  
  4. Place Stop Limit and Profit Limit orders at preset levels relative to the entry price.

Entries can be filtered by; 

  1. Checking the Market Flow on the Market Flow time frame.
  2. Adjusting the strength of fractals used when testing the Market Flow, by controlling the number of candles to the left and to the right of the fractal, or using the high/low or close price of those candles.
  3. Checking the Trend Bias on the same or higher time frame.
  4. Checking the MADC crossing on the same or higher time frame.
  5. Set Timers: Day of the Week, Time of Day. Predefine news events, or when to start and stop trading in advance.

Trades can be managed by;

  1. Setting Stop and Profit limits in advance.
  2. Allowing the strategy to move the stop to break even after price moves in favor of the trade.
  3. Using Trailing Stop.
  4. Trades may be managed manually without interfering with the strategy in operation. If you adjust the stops and limits put on by the program, simply open the strategy adjust the stop to match the orders, then click "OK". It will automatically find and synchronize to the new order levels. 

Set on-screen alerts and email alerts for;

  1. Market Flow - Price crossing above/below the previous fractal level.
  2. MACD crossing over/under the Signal line.
  3. Trend Bias - Price crossing above/below the 8 EMA.
  4. Buy/Sell order level set, pattern detected.
  5. Buy/Sell orders placed.
  6. Trades opened, closed.
  7. Trading enabled, disabled. Disabled removes pending Entry orders and prevents new orders from being entered.
  8. When a timer disables trading, a warning is sent if trades are open so the trader can decide to close them or keep them open.

The Impulsive Candle Strategy can be optimized for small to moderate stops of 10 to 40 pips. Offering the ability to get high Reward:Risk ratio trades from 2:1 to 6:1, or even higher!

The Impulsive Candle Strategy only works with the FXCM fxTradingStation 2 platform.

The products and services offered here are not intended to replace individual research, or licensed investment advice. Unique experiences and past performances do not guarantee future results. Trading currencies involves substantial risk, and there is always potential for a loss. Losses can exceed the balance in your account, depending on broker liquidity, volatility and other risk factors of the market. Your trading results will vary. No representation is being made that these products or services, and any associated advice or training, will guarantee profits or not result in losses from trading. Never use anything other than Risk Capital for trading.