Thread: System "3 Candles and Inside" - Simple but effective

GBPUSD today: pattern formed in H1. Input activated. SL reached. -14 pips. It wasn't by system error, just not all setups work. The key is to maintain the benefit/risk ratio.

Thank you for sharing. I�m testing it on demo. I have trouble waiting for the three candles, sometimes I want to enter with two. Anxiety is my worst enemy.

I added EMA 20 filter. If the price is above and the pattern is formed, only then did I enter. It helped me to avoid tickets against trend.

Good contribution. That using the EMA as a directional filter makes sense. Although personally I prefer to use the pure price action. Fewer things on screen, less distractions.

Today I closed the week with +58 pips net using only this system. The best is not the money, but the calm that gives me clear rules. No more riddles. If there is the pattern, I enter. If not, I hope. That simple.

One of the keys to success with any trading system is not only to follow rules, but to understand why behind those rules. The pattern of the �3 candles and in� is a clear example of how the price action can speak to us without the need for complex indicators. When there appears a weak regression in a dominant trend, what we see in reality is a pause in the pressure of the big players, not a change of intention. That is the moment that is sought to exploit with this strategy. Many times the novice traders make the error of interpreting three contrary candles as the beginning of a reversion. But if those candles do not break important levels, if they are not accompanied by relevant volume, they are simply respirations of the market. Knowing to differentiate between a correction and a change of structure is vital to not sabotage yourself with premature inputs or exits by fear. Another fundamental part that does not mention enough is the management of the position. This system has a favorable risk-benefit ratio, which is excellent, but if the first movement against closes by fear, the system will not be able to fulfill its statistical function.

Thank you for taking the time to write this. Very complete and useful.

And what do you think of combining it with Fibonacci levels?

Excellent explanation, it's nice to read something like that.

Thank you, this made me rethink my compulsive entry into noise zones.