The ultimate Candlestick Reversal Pattern consists of two last candles on charts with diﬀerent directions where one is buy and the other is sell and vice versa. End of one signifies the start of the other one. Signal is conﬁrmed when the last candle is closed, while it’s beginning on the end of previous candle.
Fig. the Ultimate Candlestick Reversal Pattern indicator and its template loaded on MT4
This indicator is one of its kind since it even come with its own template. The template has no special objects attached to it but it is just a chart with the best background color for the default settings of the indicators associated with the Ultimate Candlestick Reversal Pattern to be clearly visible. So when you download the indicator’s file, you should load the template before loading the indicators that come with the file.
What is the best time for using the Ultimate Candlestick Reversal Pattern?
The best answer to this concern is London and New York sessions. However the trader should ignore (should not use this indicator to trade) the beginning of London session and the end of New York session because these are the instants in which to little of the interesting things occur and there is a likelihood for you to get fake signals. Nevertheless, it’s up to the trader to make a strategy on which to make trades every time you see the signal or just during the London and New York session. But the best time is to stick to London and New York sessions.
Placing trades using the Ultimate Candlestick Reversal Pattern
While using this indicator, the trader should place buy orders when upward pointing arrows are formed. The sell orders on the other hand should be placed when the downward pointing arrows are formed.
After placing each trade, the trader should place stop losses and take profits. However if none of the stops is hit and there is an opposite signal produced, then the trader should close the order.
Stop Loss and Take Proﬁt
First, positions should be opened by the closure of second candle in the pattern, so as to get a conﬁrmation whether the signal is correct.
Stop loss should span between 40 and 60 pips, maybe even less if you know what you’re doing. With a lot of diﬀerent strategies and trading systems over time, it has been proved that stop losses of 40-60 pips are best intraday short trades. When using Candlestick Reversal Pattern in combination with this type of stop, you’ll be having about ninety five percentage of wins in your trades.
The trader should set up two take proﬁts: the ﬁrst should be at +/- 20 pips, while the second one at +/- 50 pips. The ﬁrst take proﬁt is used to close most of the opened position while about thirty percent of the positions is leﬅ hoping that the price will reach +50 pips of proﬁt.
Download Free Forex Ultimate Candlestick Reversal Pattern