Three bar strategy

Dear friends

Thanks for ur response to my these setups, specially to kartik, mr karnani, anant,mr saivenkat & also to anup for a great encouragement to start to this new thread.

I will post all rules in my next posts in sequence as it was the main desire of all the members.



all suggestions & queries are most welcome.

FIRST SET UP ( call it RIM-1 for simplicity)

Inside bars are of two types

1. Trend continuation.

2. Trend reversal

So first we have to check it out whether its Trend continuation or Trend reversal bar.

If mother bar is of the same colour of the trend , then it's continuation bar

But If the mother bar is of the opposite colour of the trend then its trend Reversal bar.

Now about the set up( Three bar set up)

For long

1. mother bar green, next bar red & next bar green

For short

mother bar red, next bar green & next bar red

If all these conditions met then only trade with this method, otherwise no trade....

Regarding Target & SL



i do profit booking in the following way.

1) Trailing SL on previous days HIGH/LOW

2) profit booking on previous support/resistance levels

3) profit booking on any candlestic reversal pattern formation( like engulfing, shooting star, hammer, harami)

4) Formation of climatic exhaustion bar

Mother bar means,shd it be wide bar range or any. Sorrry, i do not know much.

SECOND SET up (RIM-2)

1) For Long first bar & third bar green & middle bar red.

middle bar should me making a higher high, very small in size preferably within upper half of its previous bar, (preferably doji or almost Doji showing indecision in market)

2) For Short first bar & third bar red & middle bar green.

Middle bar should be making a lower low, very small in size within lower half of its previous bar.
(preferably doji or almost Doji showing indecision in market)


one most important thing

bar should not be in a range, they must be trending, system doesn't work when 4-5 bars in a range.

profit booking is same as for first set up

Reserve.......

Reserve.....

Reserve..........

Vikas,

Thanks. Just a clarification needed. What does 4-5 bars in a range mean?? Do you it should not be Green/Red/Green/Red/Green continuous pattern?

Please explain