Strategy

Entry Criteria

We monitor the following Candle Stick Patterns:

  • Hammer
  • Hanging Man
  • Shooting Star
  • Inverted Hammer
  • Doji
  • Engulfing Pattern
  • Dark Cloud Cover
  • Piercing Cover
  • Harami
  • Morning Star
  • Evening Star

Only Candle Stick Patterns are not enough to trade, so we confirm those signals with the following ways:

S & R Levels

Verify with high support and resistance levels.

Stochastic Indicator

Verify the reversal with the overbought / oversold regions and the divergence.

Bollinger Band Indicator

Verify if it is touching either upper or lower end of the band.

Volume Indicator

Volume is light in the second bottom of a double bottom and tends to increase after reversal.

Risk Management

This is the key to success in trading. We believe that “Capital Preservation is as important as making profits“.

Our minimum Risk:Reward ratio is 1:2. Maximum risk we take per trade is 0.5% to 1% of the equity and minimum reward is more than 1% of the equity.

Examples:

Let say we have Equity = 10000 $ & Pair: EURUSD
After our analysis we get,
SL(in pips): 100 & TP(in pips): 350
Now,
0.5% of 10000$ is 50$.
So, our Trade size is 0.05 lot. As 100 pips in EURUSD with 0.05 lot is 50$.

Let say we have Equity = 10000 $ & Pair: EURGBP
After our analysis we get,
SL(in pips): 100 & TP(in pips): 150
Now,
We will not take the trade as it is not satisfying our Risk:Reward ratio of 1:2.

Exit Criteria

We use the following techniques for exit:

Break-even

After trade crosses the same distance as SL in profit side, we set SL at breakeven point or at the next bar.

Fibonacci Levels

We take out half or one-third of the profits at 50% retracement level.

Trailing Technique

We keep on moving the SL to next support or resistance level to book our profits.