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Ruben-1967
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TraderCriptoBR
·
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Bullish
There are some strategies based only on counting and checking the colors of the candles, without the need for complex technical indicators. Here are some of them:

1. 3 Candles of the Same Color Strategy

If there are three consecutive candles of the same color (for example, three green ones in a row), a possible reversal is expected.

Entry: At the close of the third candle, enter against the trend (sell if there are three green ones, buy if there are three red ones).

Stop: Above/below the high/low of the last candle.

Take profit: Half the size of the three previous candles or nearby support/resistance.

2. Simple Engulfing Strategy

If a candle completely engulfs the previous one and has the opposite color, this suggests a possible reversal.

Entry: After the engulfing candle closes.

Stop: Above/below the high/low of the engulfed candle.

Take profit: Last relevant resistance or support.

3. Color Alternation Strategy

If the market alternates between green and red candles successively, it may indicate a sideways trend.

Strategy: Trade against the trend after two or three alternations (example: after a green, a red and another green, enter short waiting for a new red).

Short stop, as this strategy works best in consolidations.

These strategies can be used in isolation, but it is always recommended to test them before applying them in the real market.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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