My favorite 3 Candle Set Ups:Bearish/Bullish Engulfing
Before UJ 15mThis is a Bullish Engulfing candle, what this means is that buying pressure has now taken over the previous selling pressure. When This happens, especially on a support zone like here, we can expect a really nice move to the upside. When i see a set up like this, on a support zone, I enter on the open of the next candle and as it pulls back (to create a wick). NOTE: When there is a 10+ pip bullish engulfing candle, be careful, this can lead to a poor RR ratio. I stay away from those. (unless it is on a red news day, because price moves a lot then)
This move lead to an All green push of 80 pips in 2 hours, Arrow is where the bullish confirm candle was. I would enter on the next candle.Bearish Engulfing
Before EJ 15m
This is the opposite from the bullish engulfing (duh), this is a bearish engulfing candle, which means that selling pressure has taken over the previous candles buying pressure.When This happens, especially on a resistance zone like here, we can expect a really nice move to the down side. When i see a set up like this, on a resistance zone, I enter on the open of the next candle. When trading these i place Stop Loss ABOVE the resistance zone and place take profit according (on bullish engulfing and any other candle confirms also).
As you can see this was a very clean and straight to the next zone. This was about 50 pips (yes standards) in 5 15m candles. :0Bullish Pin Bar
Before EG 15m
This is a bullish bin bar, what this shows is that (when at a support) buyers have taken the control over the sellers WHILE in the same candle, which can more of a momentum switch than a simple rejection candle. And this bullish pin bar is a signal that we will more than likely come back up to the next minor resistance, as usual i will enter directly after this candle or wait for 1 more confirm to be more sure.
As you can see here, the bearish pin bar closed above the support zone and there for we managed to move all the way back up to a minor support (about 20 standards)Bearish Pin Bar
Before GU 15m
This is a Bearish pin bar, what this shows (if at resistance) is that buyers were in control for most of the time but by the end of the candle, the sellers took over. What this signals is that we will most likely continue down. On this set up depending on the momentum, i will enter directly after this candle or let 1 more candle play out.
AfterAfter, we pushed down to the next support zone which would result in around a 30 pip gain. (notice how the bearish pin bar closed below the resistance zone)Exhaustion Doji Candles
Before UJ 15m
Exhaustion Dojis are also a very good thing to look for, as you can see, we are exhausting ABOVE a support zone so what does that mean? We look for a bullish candle(to engulf all of past candles price movement) as a confirmation to take buy. If the next candle goes red and engulfs all price, i will just wait.
And bam, So what we look for now is an entry. Entering after the Arrowed candle is ideal with a tp at the next zone (which would be about 12 pips).Recap:
- Make Sure Price is at a zone
- Make sure you wait for candles to close
- Make sure the close below/above your zones
- ITS OK TO BE PICKY