"Everything ingenious is simple." It is this expression that is appropriate when characterizing Forex strategies "Three Candles" (3 Candles). And all because only one 3rdCandle indicator is used in working with the strategy, and it is supplemented by only one filter in the role of the well-known Stohastic Oscillator (5, 3, 3). You can download the indicators and strategy template for the Third Candle.

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The principle of the Three Candles strategy

The principle of this strategy is based on the one of the same name from the non-indicator trading system, the essence of which is to determine a short-term change in the direction of price movement, which gives us the opportunity to open a position in the direction of the impulse and take a small profit.

While this may sound somewhat ambiguous and vague, but I will try to put everything on the shelves so that it becomes extremely clear to you.

So, the “third candle” pattern or reversal bar looks something like this:

In this picture, the first candlestick is the candlestick with the High and Low points above the High and Low points of the two neighboring candles on the right and left. The right candle (candle 2) is a confirming one, and as soon as it closes, it can be argued that the pattern has formed and you can enter the market. We enter the market at the opening of the third candle, which will be our profit.

Signals of the "Three Candles" strategy for entering the market

Entry strategy rules:

• enter the market at the opening of the third candle (following the candle on which the arrow appears):

• if the Stohastic Oscillator (5, 3, 3) does not confirm the signal (it is directed in the opposite direction or its direction is not clear), we do not enter the market:

• if candles 1 and 2 are visually very small, there is no need to talk about any impulse and, accordingly, we skip such a signal:

• if the second candle is visually very large and clearly stands out on the chart, then we do not enter the market:

stop loss set a few points above/below, respectively, the “High” or “Low” points of the first candle.

take profit– fixed depending on the pair and timeframe. But it is more expedient to consider the third candle as a profit and exit the transaction when it closes.

If, nevertheless, you will apply a fixed Take Profit and after opening a position the price will go flat, then on the fifth candle after opening the order, you should exit the position, since the expected short-term impulse did not occur (what the strategy principle is based on) and the further price movement is not clear .

When trading intraday, you should refrain from entering the market 30 minutes before and after the release of important news.

Download the Three Candles strategy

Download the third candle strategy

Do you like simplicity, reliability and the absence of complex constructions in trading? Then you can get comfortable - today we will begin to study the most accessible strategy "3 candles". Let's reassure right away - simplicity has nothing to do with profitability, because “more difficult” does not mean “more profitable”. Cherished points will be regularly converted into the growth of your deposit.

So let's start studying this really interesting, and at the same time really profitable strategy.

Just click "explore" - and earn on the "3 candles" strategy in real conditions!

Turbo Profit Expert Advisor is another representative of high-quality Forex robots. Like the vast majority of automatic trading systems, the considered stars from the sky are not enough, but is able to bring a confident, regular income with appropriate optimization. The advantages include resistance to power outages. There is no need to keep your computer on all the time or use a VPS server. After enabling, the program will analyze the positioning on the exchange, according to magic number will determine its own lots and will continue to work based on changed circumstances.

Turbo Profit does not use Forex pending orders, but the averaging strategy is implemented in a rather interesting way. Note that the expert is implemented in Russian and has awards as the best Forex advisor. Pluses can be added work in both directions Buy/Sell simultaneously. Regardless of where the market goes, the robot will trade and average positions.

Turbo Profit shows the best results during the flat market with a wide price range. Trading control is required in order to disable the program for the duration of a recoilless, stable movement. Here it is necessary to remember the observance money management. If your balance has a sufficient margin of safety, no trend lines are afraid of it.

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The Turbo Profit 3.1 Expert Advisor is the latest version of the robot, in which the developers have added an improved logic for working with virtual levels, and also introduced the best optimized settings. For example, it became possible to set the size of a basic Forex order. After disconnection from the server, new lots are not formed, but open positions are closed. Also added a function exit_mode.

Immediately after being placed on the chart, the Expert Advisor analyzes the market situation. Then it opens 2 trades at the same value in different directions. Thus, he plans to earn in whatever direction the price goes, and the negative lot will be averaged.

By default, Turbo Profit is active three layers. One layer defines the upper and lower limits of the price range within which the program makes deals. When the price moves too far from the original position, the EA puts all open orders in Forex lock and starts trading from scratch. The number of inputs for one layer is determined in the settings by the parameter N_enable_Sloy, and how to break the lock on Forex, read the training materials on the pages of our resource.

Click the button to go through a step-by-step guide to the "Turbo Profit Expert Advisor" and master this tool in a few simple steps Explore »

Default N_enable_Sloy is 7, an increase to 14 will not change the profit received, since it does not matter how many trades the Turbo Profit EA will hedge when creating a new layer. The number of layers can also be doubled, this will not affect the result in the medium term. We recommend increasing the value RiskPercent at least up to 10%. This value is responsible for the amount of the deposit that you risk, and the factory 2% seems like too little risk.

Turbo Profit 3.0 starts trading with a volume of 0.02 when the RiskPercent at 2%, and a lot of 0.30 at RiskPercent 30%. In a later version, it became possible to set the order volume manually. This criterion directly affects the amount of income received, it does not lead to a complete drain of the balance, and the maximum drawdown does not exceed 10% in the worst case.

The key point in the Turbo Profit settings is LotMultiplicator. He is responsible for the step of increasing the volume of the transaction. The default value is 1.2, it is allowed to increase to 1.3. It is interesting that with a step that increases the lot by 2 times, instead of 1.3, the potential profit will also increase by 2 times and reach 60% per month. These are aggressive installations, which, in addition to RiskPercent And LotMultiplicator include additional options.

Click the button to go through a step-by-step guide to the "Turbo Profit Expert Advisor" and master this tool in a few simple steps Explore »

The distance to the order is regulated hSETKY. We used 35. Having opened 2 multidirectional positions in the GBR/USD pair at a price of 1.30000 with aggressive settings, we get the following picture: thanks to N_enable_Sloy The Turbo Profit Expert Advisor makes 7 losing entries every 35 pips with an initial lot of 0.30 at a RiskPercent of 30% before it opens the Forex lock and forms the next layer. Each new position will be doubled due to LotMultiplicator equal to two. Thus, after 250 points, we will trade with an order equal to 20.

The Forex strategy tester showed the maximum value of the transaction equal to three, and the profit on it reached 1000 points. But for such trading, you need to have a deposit with a high margin of safety.. In writing the review, we used a demo account and a strategy tester. Turbo Profit has shown itself to be a high-quality and profitable robot that can generate income with appropriate modification.

Good afternoon fellow traders binary options!

The entire market is a series of repeating behavioral patterns, that is, crowd reactions to both external and internal factors. Analyzing price patterns, we find certain patterns that help us predict the future direction of the price. The problem is that there are a great many different patterns, and not all of them are easy to interpret.

Today we will analyze how to find and use the figure "Three candles is a simple and easily defined pattern that can be used as an independent trading system.

Characteristics of the strategy

Reference section

Strategy idea

The Three Candles pattern is located just at the junction of two trends and resembles a fractal in shape. If we are talking about buying, then this is a sequence of three candles, where the high and low of the middle candle are lower than the high and low of the two standing next to each other. At the same time, the last two candles should close in the direction of the transaction. That is, for purchases, the last two candles must be white.

If the pattern for buying resembles a hollow, then the pattern for selling is a cap. High and low candles in the middle should be higher than the high and low of the two adjacent ones. Also, in the case of sales, the last two candles should be black, which tells us that the trend has changed to a downtrend.

You don't have to manually determine the pattern on the chart - this task falls on the auxiliary 3rd Candle. The indicator signals the appearance of a new pattern with an arrow on a blue or red chart. An up arrow means a signal to buy a Call option, a down arrow means to buy a Put option.

The strategy allows you to trade on any symbol and timeframe. The pattern shows itself best on high timeframes, from 1 hour and above. But you can also trade on the minute chart, just the proportion of false signals will be higher. The main thing is to filter all signals using an oscillator - it cuts off most of the entries against the trend.

The CCI oscillator used in the strategy is displayed on the chart as a line and has overbought/oversold zones — above 100 and below -100, respectively. That is, if the value rises above 100, we do not consider buy signals, if it is below -100, we do not consider sales.

We will trade on corrections and reversals, so these are not the safest trades for. However, if everything is done correctly - that is, wait for confirmation and only after that enter the transaction - the system will work as expected.

Trading Rules

Call option:

• We wait until a blue up arrow appears on the chart;
• The CCI on the previous bar must be below 100.

Put option:

• We wait until a red down arrow appears on the chart;
• The CCI on the previous bar should be above the -100 level.

The expiration time is always 1 candle of the current TF. per transaction - no more than 3% of the deposit.

Trade examples

Currency pair GBPUSD, timeframe 15 minutes. Despite the fact that there is a clear upward trend on the chart, only two out of four trades were closed in ITM for sale (Put option). We received buy signals (Call option) too late, but here the filter saves, which in both cases was in the overbought zone. That is, we did not open a single buy deal in this case.

Volatile pairs are best suited for trading, for example, these include crosses with the yen: GBPJPY,

In this article, we will look at the Three Candles trading strategy for binary options and Forex. Also here you will find tips on its use and settings.

The strategy for binary options Three candles is quite popular among traders. It has several advantages over others. It works great with short-term trading (for example,).

The system is one of the non-indicator strategies, so it can be used by professionals and beginners who have not yet fully mastered the use of technical indicators. The percentage of profitable contracts when trading this strategy often exceeds 80%.

Three candles is great for almost all currency pairs. Let's look at what its essence is and what rules must be followed when working with this system.

The essence of the strategy

The Three Candles system in binary options for 60 seconds is based on the use of 2 candlestick analysis patterns - “3 white soldiers” and “3 black crows”. These continuation patterns often form during strong trend moves.

"Three black crows" means a series of 3 bearish bars with small shadows and long bodies, and there are no price gaps between them. After the appearance of this model in the bear market, quotes most often continue to move in a downward direction.

A similar pattern is the "three white soldiers". It is visible in a bull market and becomes a precursor to the subsequent rise in quotes. The model consists of 3 ascending bars.

Increase

You can apply the Three Candles strategy with a timeframe of 15 seconds or 1 minute. In both cases, you should set 60 seconds as the binary options expiration time.

Trading Rules

For efficient trading on the BO market using this system, certain rules must be observed. CALL trades should only be opened in an uptrend. Entering short PUT positions is desirable in a downtrend. Trading against the trend in these patterns is associated with high levels of risk.

Increase

When the following candlestick patterns appear - “3 white soldiers” or “3 black crows”, you need to carefully study the price bars that form the patterns. It is worth paying attention to the cost of closing and opening. If all bearish bars open with a downward gap in relation to the previous one, then this signal can be used to acquire BO for 60 seconds (in screenshots 1, 3 and 4 there are signals, there are gaps between the candles).

If upward gaps are shown between bearish bars (the signal is red in the screenshot), then this signal should be skipped. The same should be done with bullish candles. The most optimal entry points are formed when patterns are formed that have no gaps between candles at all.

False signal filtering

When viewing the history of quotes in any currency pair, you can see that this system for binary options with a timeframe of 60 seconds does not always give positive results. There are cases when, after the formation of the “3 white soldiers” or “3 black crows” patterns, the trend does not continue, but ends. Accordingly, those trades that are opened according to these signals will bring losses.

Increase

To prevent such situations and filter out false signals, it is necessary to use several indicators, for example, . It is enough to put the Stochastic Oscillator on the chart, and when a pattern of three bearish or bullish candles is formed, you need to look at exactly where the signal line is directed in the oscillator.

If “three black crows” appear, and the lines are directed downwards, then you can buy a PUT option. If the indicator line has not yet had time to turn down, then it is better to ignore the signal, since it will most likely be false. Similarly, if “three white soldiers” is shown, it will confirm its growth in the Stochastic Oscillator indicator of the signal line.

Before you start trading using the Three Candles system, it is advisable to test it in demo versions on various currency pairs. If on one financial markets it can demonstrate high profitability values, then the system will give less accurate signals on others.

You can also test the system using the Metatrader 4 terminal, by scrolling the chart of the selected pair and carefully analyzing the history of quotes. It is enough to find at least one hundred patterns of "3 white soldiers" or "3 black candles", and make calculations, how many of them gave false signals, and how many - correct ones.

If the ratio of profitable to unprofitable signals is less than 60%, then it is necessary to choose a different currency pair and make similar calculations. Analyze several financial assets to choose the one according to which the Three Candles system will provide at least 70 - 80% profitability.

Graphic parameters and indicator functions

In this strategy, the Japanese candlestick chart has become a kind of indicator. The location and shape of the three candlesticks have an indispensable influence on the trading system. Therefore, it is required to understand the principles by which Japanese candlesticks are built.

You can use the strategy without indicators. But it is better to use some tools for technical analysis to filter false signals from 3 candles.

We need an indicator that can determine the current trend on the price chart. To do this, you can use a simple one that has a period of 50 or 100.

If the value of an asset is based on the moving average, then this is a signal about a downtrend. When the asset price is above the moving average, an uptrend is shown.

If the price is constantly intertwined with the moving average, then, most likely, a side trend prevails on the chart. For additional filtering, you can use Stochastic with settings 5,3,3.

In this case, the direction of the slow moving average will be a priority. The direction must match the direction of movement that the 3rd candle has. But it will be even better if the Stochastic is located in the oversold or overbought zone, which will be an additional signal.

Trading signals

The most optimal solution would be to trade during the day when the largest American and European stock exchanges operate. It's better to choose underlying asset, where during the trader's work there is a pronounced trend, and moderate volatility is also noted. In fact, this trading system can work successfully on any timeframe, except for the second.

Professional traders recommend choosing the most suitable timeframe in terms of the “trading risks/dynamics” ratio, namely, the M1 interval. First, you need to determine the trend in the current market, for which you can use the chart scaling capabilities.

Up signal

• In a downtrend, the asset quotes move.
• 2 growing green candles are formed.
• When the 3rd green candle is opened, you should immediately buy a contract to increase quotes.

Increase

Down signal

• In an uptrend, the asset quotes move.
• 2 falling red candles are formed.
• When the 3rd red candle opens, you should immediately buy a contract to reduce quotes.

Increase

By drawing up binary contracts every time, working on correctional ones, the trader has the opportunity to make 87% open positions successfully. Quotes naturally begin to correct when building a one-sided trend. It follows from this that, by concluding a binary trade on a corrective movement, a trader is almost guaranteed to be able to close the contract with a profit.

In this trading mode, it is recommended to strictly adhere to the principles of risk management, which involve opening transactions for such an amount that does not exceed 3% of the total available deposit. If on the trader's account a small amount funds, then it is necessary to reduce risks and trade with minimum lots.

How to use the Three Candles strategy in binary options. Instruction for beginners

To better understand the principle of work, consider an example of a trade on a 5-minute timeframe. First you need to go to the web terminal brokerage company 24option https://www.24option.com/international/ru/ , where we select the most liquid EUR/USD pair from the list of assets and expand the candlestick chart with the added stochastic oscillator.

Increase

To trade BO in accordance with the Three Candles system, it is convenient to use the broker 24option. The company offers traders a terminal with the ability to set up a variety of charts and use any tools for technical analysis.

Almost immediately after the start of active trading in Europe, a signal was formed for the depreciation of the euro against the US dollar.

Binary options - strategy " 3 candles"- is very popular today. This is because it is simple, effective, with a good percentage of profitable trades.

Every beginner in binary options can use it, since special knowledge of the technical analysis of the chart is not required.

You just need to know how the graph is built " Japanese candles". It is he who is fundamental in the considered trading strategy.

Binary Options « 3 candles» are well traded on the timeframe of 15 or 30 minutes. You can also consider a larger timeframe.

If the timeframe of the asset price chart is less than 15 minutes, then it is better not to apply the trading strategy, since there are a lot of market noises on a small timeframe, and this is why it is highly likely that the trading strategy " three candles' won't work.

It is necessary to work according to this strategy according to the trend. When the price corrects, it is necessary to seize the moment for a successful entry into the transaction.

This is where three candles help us. The first candle is the highest or lowest of the three. In addition, it must be higher or lower (depending on the trend) of the previous candle.

The second candle should close with the trend and, very importantly, it should not be in the body of the first candle.

The third candle is a signal one – it is necessary to enter a trade on it in the direction of the second candle.

Applied indicators

The Japanese candlestick chart is a kind of indicator in this strategy. The shape and location of the three candles will certainly affect the trading strategy.

Therefore, it is necessary to understand the principles of building Japanese candlesticks.

The strategy can be applied without indicators. But, of course, it is better to use some technical analysis tools to filter out false signals from three candles.

You need an indicator that will determine the current trend on the price chart. A simple moving average with a period of 50 or 100 is best suited for this.

So, if the price of an asset is below the moving average, then the trend is down. If the price of an asset is above the moving average, then the trend is up.

If the price is constantly intertwined with the moving average, then, most likely, a side trend prevails on the chart.

Additionally, for filtering, you can use the well-known oscillator - stochastic. Its settings should be 5, 3, 3.

The direction of the slow moving average, in this case, is a priority. It should coincide with the direction of movement of the third candle.

But it will be even better if the stochastic is in the overbought or oversold zone. This will be an additional signal.

Conditions for entering a trade according to the strategy

Binary option CALL

– we buy a CALL binary option on the third candle, when the first candle is below the previous candles and the second candle, while the second candle did not close in “ body» of the first candle. Stochastic should be in the oversold zone.

Binary option PUT

– we buy a PUT binary option on the third candle, when the first candle is higher than the previous candles and the second candle, while the second candle did not close in “ body» of the first candle. Stochastic should be in the overbought zone.

binary option expiration date

The term of a binary option must be equal to the timeframe - the period of time for which the chart is built.

Or you can set the appropriate expiration time, which should coincide with the close of the third candle.

When not to trade

• you cannot trade one hour before and after the release of important economic news;
• you cannot enter a trade if the second candle closes in " body» of the first candle.

Like these ones simple rules given trading strategy. By correctly analyzing the chart and following the rules of the strategy " 3 candles”, you can consistently make a profit from binary options trading.