This 4HR Dual Candlestick strategy is based on dual candlestick patterns in which the second candle is completely contained by the high and low of the first candle (use same Inside bar momentum strategy but with other indicators). Using two indicators for this strategy are
Bollinger Band (20,2, close)
RSI (14, close, Levels 30,50,70)
Long position
- The first candlestick must be bullish (green or white) and if the second candlestick (either green or red) is completely contained by the first,
- Both appear between upper and middle bands of Bollinger bands and,
- RSI above 50 level.
Then set a buy-stop order. Use the high and low of the first candle for the calculation of buy-stop order.
Mostly i find both candle of same color
- If the first candlestick is bullish (green or white) and the second candlestick is also green or white,
- Both appear between upper and middle bands of Bollinger bands and
- RSI above 50 level.
- Then use the high and low of the first candle and put it into Google Spreadsheet it will calculate Entry price , Stop-Loss and Take-Profit.
Short position
- The first candlestick must be bearish (red or black) and if the second candlestick (either red or green) is completely contained by the first,
- Both appear between lower and middle bands of Bollinger bands and
- RSI below 50 level.
then set a sell-stop order. Use the high and low of the first candle for the calculation of sell-stop order.
Mostly i find both candle of same color
- If the first candlestick is bearish (red or black) and the second candlestick is also red or black
- Both appear between lower and middle bands of Bollinger bands and
- RSI below 50 level.
Then use the high and low of the first candle and put it into Google Spreadsheet it will calculate Entry price , Stop-Loss and Take-Profit.
Here are some examples for more clarification
Google Spreadsheet - Calculation of Entry Price, Stop Loss and Take Profits
