Today, I’m excited to share a simple yet effective 3-step trading strategy using candlestick patterns and price action.
This strategy is designed to enhance your trading skills and help you make informed decisions.
Step 1: Find the Trend
The first step involves identifying the current market trend. For instance, if the market shows a downtrend, this is your cue to focus on sell trades.
Understanding the trend is crucial as it sets the stage for your trading approach.
Step 2: Identify Key Levels
In the second step, focus on identifying significant levels, especially in a downtrend. These levels are usually formed around strong candlestick patterns.
For example, a large candle may indicate a potential support level, guiding where to make your trades.
Step 3: Find the Candlestick Pattern
The final step is to spot a specific candlestick pattern, like a bearish engulfing candle, which occurs when a candle fully engulfs the previous one.
This pattern is a strong indicator of a potential downward price movement, aligning with the overall trend.
Here is a live trade I Just took yesterday using this strategy.
Video Explaining how I trade it:
Remember, consistency in applying these steps is key to success. Don't hesitate to reach out if you have any questions or need further clarification.
To Your Trading Success,