Daily Chart 3-Candle | Foreign exchange indicator download- MT4/MT5 resources

Take some time to browse the threads and you'll understand the system.

We are trading swing points (a system of 123 ideal reversal candles) and support and resistance (best buy/best sell levels). See accompanying indicators and recommended settings.

swing point
This system is used for trading reversals. This indicator shows the trigger line for our entry. Sometimes the price may rise to the high of a bearish swing point if sellers want to sell higher, and drop to the low of a bullish swing point if buyers want to buy lower. Therefore, your stop loss must be set above/below the swing point. Please note that some improvements have been made to the system to filter out fakes as much as possible. Please download the attached indicator. Study the ideal setup described in this article to understand how the system works.

Best Buy and Sell Levels <br> This system is primarily used for trend continuation on entry, once the price stalls above the Best Buy or Sell line, we buy, and below the Best Buy or Sell line, we sell. Please download the indicator below. This article will further update the recommended settings. To get an overview of this aspect of the strategy, read posts #441 and later. These lines represent support and resistance levels only. Our approach is to buy support and sell resistance. When support turns into resistance, we sell. When resistance turns into support, we buy.

fact

1. Markets tend to trend more than they bend/reverse.
2. Knowing your target reversal point can help you make a reversal or continue decision.
3. If I miss a strong reversal, I can always go into a lower time frame reversal or reversal rejection setup.
4. We will primarily trade on H4, H12 and daily charts, or trade based on daily chart trends on shorter time frames such as H1. If you trade on H1, the profit is smaller.
5. Markets reverse trends through "U-turn" patterns called "swing highs" or "swing lows."
6. This system pre-identifies "target" reversal points to help us place reversal or continuation trades.
7. Five bars form a swing high or swing low.
8. At all times, BAR#3 is the "peak" bar.
9. Scenario #1 described below is our ideal trade.

trading pair

1. EURUSD, NZD/USD, USDCAD, XAUUSD, USDJPY
2. GBP CAD, GBP NZD - Great for trading USDCAD and NZDUSD
3. Cryptocurrency Pair LTCUSD – Also very helpful in determining USD strength

NB: I also watch the US30 and USDX for confirmation of USDJPY direction and overall USD sentiment. A great resource for more information.

Long (Buy) Transaction

Ideal Buying Scenario #1

1. The market is trending downward (lasts for at least 3 days). Downtrend - Making lower highs and lower lows.
2. At the close of the last bar (bar #3), there are two bars to the left with higher lows
3. BAR#3's closing price is higher than BAR#1's closing price (if BAR#1 has a bearish real body) or higher than BAR#1's open price (if BAR#1 has a bullish real body).
4. Create a buy trade or buy limit at the opening price of BAR#1 (if BAR#1 has a bullish real body) or the closing price (if BAR#1 has a bearish real body)
5. The stop loss should be placed 50 pips or 15 pips below the BAR#2 low, whichever is greater. If the low of BAR#1 is lower than BAR#2, we use the low of BAR#1 - 15 pips as stop loss.
6. The average profit is 100-200 PIPS. Swingers may last longer.
7. Evaluate the probability of winning.

1. When the closing price of BAR#3 is higher than the prices of BAR#1 and BAR#2, the probability of winning is higher.
2. The probability of winning is higher when BAR#3 closes above BAR#1 and BAR#2 prices and BAR#1 and BAR#2 prices are close to or at the same level.
3. The above is important because rejection of reversals at BAR#1 prices is common

Other purchasing scenarios

These situations occur when BAR#4 or BAR#5 closes higher than BAR#1 and BAR#2 prices. The same rules apply to the trade outlined in Buy Scenario #1



Ideal Selling Scenario #1

1. The market is trending upward (for at least 3 days). Trend - making higher highs and higher lows.
2. The last bar (bar #3) closed with two bars having lower highs to its left
3. BAR#3 closes below BAR#1's close (if BAR#1 has a bullish real body) or below BAR#1's open (if BAR#1 has a bearish real body).
4. Open a sell trade or sell limit at the opening price of bar #1 (if bar #1 has a bearish real body) or the closing price (if bar #1 has a bullish real body)
5. The stop loss should be placed 50 pips or 15 pips above the BAR#2 high, whichever is greater. If the highest point of BAR#1 is higher than BAR#2, we use the highest point of BAR#1 + 15 pips as stop loss.
6. The average profit is 100-200 PIPS. Swingers may last longer.
7. Evaluate the probability of winning.

1. When the closing price of BAR#3 is lower than the prices of BAR#1 and BAR#2, the probability of winning is higher.
2. The winning probability is higher when BAR#3 closes lower than BAR#1 and BAR#2 prices and when BAR#1 and BAR#2 prices are close to or at the same level.
3. The above is important because rejection of reversals at BAR#1 prices is common

Other sales scenarios

These situations occur when BAR#4 or BAR#5 closes below the "BAR#1" and "BAR#2" prices. The same rules apply to the trade outlined in Sell Scenario #1

Buy and sell rejection level

These are important because the first sign of buyer exhaustion is that every opportunity to continue pushing prices higher is met with resistance, while the first sign of seller exhaustion is that every opportunity to push prices lower is met with resistance.

Where can we find these levels?

The buy rejection level is located at the highest bullish close of the swing low.
The sell rejection level is located at the lowest bearish close of the swing high.

Notes and tips

1. Keep your take profit at 100 pips for a counter trend setup.
2. If the price fails to reach the price of bar 1, the trend will continue.
3. If you are in a short/sell trade and the price continues to fall (cannot get below the close) at the lowest bearish close of the swing high structure, the market may look to bullish, protect your trade or take profits. Otherwise, future sell-offs will be even stronger.
4. If you are in a long/buy trade and the price continues to fall (cannot close above) on the highest call close of the swing low structure, the market may turn bearish, protect your trade or take profits. Otherwise, future buying will be even stronger.