DAY X [Forex & Crypto Trading Strategy] based on Japanese candlestick signals

Forex & Crypto Trading Strategy «Day X» is based on a candlestick price pattern, which will allow you in some cases to enter the market at a trend reversal (mainly on D1) with minimal risk and a low percentage of failures (getting stop losses).

• Currency pair — any

This model is not seen so often, but due to its multicurrency, you can track it on a large number of instruments, which means you can receive this signal more often.

• The time interval is D1, in any case, initially this model is intended specifically for the daily interval. On smaller time frames, it is also applicable, but it is worth remembering that the smaller it is, the more false signals.

Some statistics:

Pair GBPUSD — H1 for the current 2014 worked out 12 patterns, of which 33 percent failed (did not work as it should); D1 out of the same number of patterns, only 10% of failures; on a daily interval, a pattern is formed on average only 3 times a year. That is, not at all often, but what is, that is …

Bearish forex strategy model «Day X»:

1) Price makes a high.

2) Rollback down begins. Ideally, the candles within this rollback should not be sharp and large, and the rollback should be moderate and systematic.

3) We are waiting for the appearance of the first white candle. At least 2-3 candles should form from the high to this candle. If at the time of the appearance of the 1st white candle the price has already gone very far in the direction of a new trend, then the efficiency of the model decreases.

4) The low of the white candle should be the low of the entire retracement.

5) Under the minimum of this candle, a pending sell stop order is placed.

6) Stop loss for the high formed after the appearance of the white candle.

7) If, after the 1st white candle, 4 more candles formed (the color does not matter), and the order was not activated, then it should be deleted.

8 ) If after the 1st white candle the price has gone up a distance equal to this candle, then the order is also deleted.

9) Take profit is equal to the distance from the first high (pivot point) to the low of the white candlestick from the entry point.

Bullish X-Day pattern:

1) Price makes a low.

2) Rollback up begins. Ideally, the candles within this rollback should not be sharp and large, and the rollback should be moderate and systematic.

3) We are waiting for the first black candle to appear. At least 2-3 candles should form from the low to this candle. If at the time of the appearance of the 1st black candle the price has already gone very far in the direction of a new trend, then the efficiency of the model decreases.

4) The high of the white candle should be the high of the entire retracement.

5) A buy stop pending order is placed above the high of this candle.

6) Stop loss for the low formed after the appearance of the black candle.

7) If after the 1st black candle 4 more candles formed (the color does not matter), and the order was not activated, then it should be deleted.

8) If after the 1st black candle the price has gone up a distance equal to this candle, then we also delete the order.

9) Take-profit is equal to the distance from the first low (pivot point) to the black candle high pending from the entry point.

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