(Works on BTC, ETH, SOL, and other liquid pairs)
🔍 Essence of the strategy:
Catching the moment of reversal or acceleration of trend based on the 3 candle pattern.
📊 Entry rules:
1. For LONG (buying):
✅ Candle 1: Descending (red), but with a small body (sign of exhaustion of the downward move)
✅ Candle 2: Green, closes above the midpoint of the previous red
✅ Candle 3: Green, closes above the maximum of candle 2 → entry signal
2. For SHORT (selling):
✅ Candle 1: Ascending (green), but with a small body
✅ Candle 2: Red, closes below the midpoint of the previous green
✅ Candle 3: Red, closes below the minimum of candle 2 → entry signal
⚙️ Settings for maximum effectiveness:
- Timeframe: 15-30 minutes (optimal balance between noise and accuracy)
- Confirmation:
- Volume on the 3rd candle must be above average
- RSI (14) not in overbought/oversold zone (between 40 and 60)
- Trend filter: Price above EMA 50 for LONG, below for SHORT
💰 Capital management:
- Leverage: 3x-5x (no more!)
- Stop-loss:
- For LONG: below the minimum of candle 3
- For SHORT: above the maximum of candle 3
- Take-profit:
- 1st target: 2:1 to risk (e.g., risk $10 → secure $20)
- 2nd target: move stop to breakeven and wait for 3:1
📈 Example trade (BTC/USDT):
1. Candle 1: Red, $60,000 → $59,800 (small body)
2. Candle 2: Green, $59,800 → $60,100 (closed above the midpoint of candle 1)
3. Candle 3: Green, $60,100 → $60,500 (broke the maximum of candle 2)
→ Entry into LONG at $60,500
→ Stop-loss: $59,750 (below the minimum of candle 3)
→ Take-profit 1: $61,500, take-profit 2: $62,500
💡 Why does this work?
1. Filters out false breakouts — requires confirmation from 3 candles
2. Catches moments of momentum change — when weak bears/bulls give up
3. Minimizes risk — clear entry and exit rules
🚫 5 fatal mistakes in this strategy:
1. Trading against the trend (e.g., LONG when the price is below EMA 50)
2. Ignoring volume (candle 3 must be on increased volume)
3. Too much leverage (above 5x increases liquidation risk)
4. Moving stop-loss 'in hope' (violates the system)
5. Trading on news (the strategy works only on technicals)
🔧 How to automate the strategy?
1. Setting alerts in TradingView for the '3 candles' pattern
2. Using a bot (e.g., via Binance API) with clear conditions:
- Automatic entry when all conditions are met
- Strict stop-loss and take-profit
📌 Checklist before the trade:
✅ Does the pattern '3 candles' match?
✅ Is the volume on the third candle above average?
✅ Is RSI not in extreme?
✅ Is the price related to EMA 50?
If 4/4 'YES' → you can enter!
💬
- Have you tried similar strategies? What were the results?
- What filters do you add for reliability?
🔥 Like and share — if you’ve added this strategy to your arsenal!
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