Enter and win now the opportunity to enter a buy deal on this pair

How to profit from day trading

1. Required settings

  • Time: Choose a short time frame (such as 5 minutes or 15 minutes).

  • Tools: Trading platform that supports Japanese candlesticks.

  • Indicators: 20-period Simple Moving Average (SMA) and 14-period Relative Strength Index (RSI) can be used.

2. Strategy steps

Step 1: Market Analysis

  • Check the overall market trend (bullish or bearish) using the moving average. If prices are above the average, the market is considered bullish, if they are below, it is considered bearish.

Step 2: Identify entry points

  • Look for a strong candle pattern (such as a doji or reversal candle) at support or resistance points.

  • Make sure the RSI is below 30 (for buy) or above 70 (for sell) to indicate market saturation.

Step 3: Manage the deal

  • Entry point: After confirming the candle pattern, enter the trade.

  • Stop Loss: Place a stop loss order below the low price (if buying) or above the high price (if selling) of the previous candle.

  • Take Profit: Use a risk/reward ratio of 1:2, meaning you aim to take profits twice as much as you risk.

Step 4: Risk Management

  • Make sure that the risks in each trade do not exceed 1-2% of the total capital.

  • Monitor the trade regularly, and if market conditions change, be prepared to close the trade early.

3. Practical example

  • If you have a buy signal as a result of a Doji candlestick pattern at a support level, and the RSI is below 30:

    • Enter the trade at a price of 100.

    • Place stop loss at 98.

    • Target take profit at 104.

conclusion

Day trading strategy using Japanese candlestick pattern is effective for making quick profits, but it requires practice and focus. Make sure to try the strategy on a demo account before using it on a real account, and always remember to manage your risk.