Three bar strategy

[VIKAS 21]

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

This system contains three bars & first of these bars( where system formation starts) is mother bar.

 

[timepass]

What is the TF for this strategy ? EOD ?

 

[a1b1trader]

Hi Vikas
Though the concept is clear, but,
It would be better if you please post the chart/image along with the description.
Thanks

 

[VIKAS 21]

What is the TF for this strategy ? EOD ?

YOU can use it on any time frame...


5min,15min,30min,60 min, daily chart & even on weekly charts too...

It basically gives us the correct direction of trend & keep us away from fake trend, I will try to make it clear by charts.

 

[VIKAS 21]

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[VIKAS 21]

Please look in the above chart , beautiful inside bar pattern, a green bar in between so much red bar....

 

[timepass]

Hello Vikas, how does the size of the third bar affect the setup ?

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....

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.

 

[VIKAS 21]

Actually the color of the bar completes our set up.....

for long--g-r-g

for short-r-g-r

The size of the third bar is important as middle bar just pause the movement, so after that if we have a big bar, shows market is ina clear direction, no confusion...

so in most of the cases so u see market movement significatly after this third bar.

 

[VJAY]

Actually the color of the bar completes our set up.....

for long--g-r-g

for short-r-g-r

The size of the third bar is important as middle bar just pause the movement, so after that if we have a big bar, shows market is ina clear direction, no confusion...

so in most of the cases so u see market movement significatly after this third bar.

Dear Vikas,
Entry @ close of 3rd bar OR abv high of 3rd bar?

 

[VIKAS 21]

FOR LONG--above high

FOR SHORT-- below low