No one can say I'm not determined.
Have started several threads, met some great people...
And boy have I learned a lot!!!
Working like anything to develop an ea really brought home a lot of insight into what works and what doesn't.
The ea is actually decent. But not quite good enough to actually put money into.
Then researching other eas. Having a lot more understanding about what to look for and what to avoid.
Found a couple very good, free, steady winners, passing 10 year backtests with flying colors, 80% win ratio. 120%/year. You know I have them attached to my account right now.
But for this thread I want to present a very, very simple scalping strategy that I found while researching on the net.
Lotta fun. The strategy is very sound.
Have been trading demo with it recently with good results.
The "lucky spike" is a good example of how to trade candle patterns. It's a simple pattern to spot.
We will be using other candle patterns also along with an adx crossing indicator.
Decent description of basic candlestick patterns:
http://en.wikipedia.org/wiki/Candlestick_pattern
So here we go with the:
"Lucky Spike".
http://t0.gstatic.com/images?q=tbn:A...dylDVv9FZ-WciR
Bullish Signal
1. Strong downtrend.
2. Lucky Spike, Buy!
3. Place Stop Loss just below the Lucky Spike shadow.
4. Take profit on the next candlestick's close.
http://img401.imageshack.us/img401/534/spikeh.png
Bearish Signal
1. Strong uptrend.
2. Lucky Spike, Sell!
3. Place Stop Loss just above the Lucky Spike shadow.
4. Take profit on the next candlestick's close.
http://img59.imageshack.us/img59/6117/spike2.png
After a spike, there is often a longer candlestick – bullish after strong downtrend, or bearish after strong uptrend. Not every time, but it happens far more often than not. Whether the trend has reversed or not, trade just one candlestick for a few pips profit. That's easier and more effective than chasing the trend or watching how it is turning against you on the next candlestick.
Can be used with the smallest time-frame as well as daily, weekly or even monthly time-frame. You trade no more than one candlestick. Enter on the open and exit on the close.
INDICATORS AND TEMPLATE ARE HERE: http://www.forexfactory.com/showpost...&postcount=161