Free Candle Strategy

In this article we will look at forex trading strategy for intraday work "free candle". This trading strategy is designed to operate on 15-minute charts and is quite a handy tool for working in the currency market, which can effectively make decisions and close deals with a good positive mathematical ozhidaniem.Osnovoy this trading strategy is the concept of "free candles." For the definition of "free" spark we need exponential moving average with a period of 9 superimposed on the 15 minute chart. In the description of this trading strategy we will use the 15-minute chart of the EUR / JPY forex. So, what is a "free" candle:

body and the shadows of the candles do not touch the middle
closing price of the candle should be higher than the previous high (for bullish) or below the previous low (for a bearish trend)
Watching the 15-minute chart, the first thing we determine the current trend of the slope of the moving average. After that define candles, body and which do not relate to the shadow moving average. This so-called "free" candle (free candle).



We define "free" candle can begin preparations for a sdelki.V our trading strategy to go long (buy) on forex, we need a free white candle, which is above average. If the closing price of the candle is higher than the maximum price (high) the previous candle, at the opening of the next bar, you can open a long position.

For a short position (sell), we need a free black candle, which is below average. If the closing price of the candle is lower than the minimum price of the previous candle - at the opening, you can open a short position.

Manage your

Once we opened the position we need to put a stop loss and take profit. For a long position we put the stop loss to the minimum free candles. Further monitor the situation and, if the floating profit on the position reaches about 70% of the initial risk can be transferred to the stop loss to breakeven. For a short position doing the same thing. Stop-loss set at a maximum of free candles and, as soon as the floating profit is 70% of the initial risk, we will move the stop to breakeven.