Atm master candle indicator – 4xone
The general profit target is the same as the master candle size, so if the master candle is 71 pips, your target should be 71 pips. Only deviate from this profit target if the nearest price-action PA area differs from the master candle size, then put the target near the price-action area. A stop-loss saves you from losing more money than your account can absorb, but also where your set-up is invalidated.
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Conservative master candle traders only enter the trade after a retest of the breakout boundary SR , not on the break. As with all trading strategies, there are many variations on this trading strategy. You can follow the variation you like, but in the end, you need to find what works for you.
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First at all we are going to describe what is a master candle. Basically these are candle with big bodies and wicks the sticks over and under the bodie of the candle marking a new high or a new low and whose extension or range covers out the following 4 or more candles.
Master Candle Setup Example
To better understand the concept of master candles we can observe the following image:. You must be logged in to post a comment. Previous Next. What is a Master candle?
Usually if we observe the formation of a master candle we can determine a range between the maximum and minimum of that candle which will be stronger the more candles are within the range. It is therefore expected that in the event of rupture the prince will make a fairly strong movement in the direction in which the breakout occurs. For this reason it is recommended to apply this trading strategy in instruments and assets that are sufficiently volatile in order to capture a strong movement.