Double/Triple Strategy and New Feature
I had planned on releasing the Support/Resistance article this week (as per the Training Schedule for October 1st), but I have a surprise for you that is well-worth the wait: a new strategy BUILT-IN to CandlePro AND this article on how to use that feature in your trading! It is a 2-for-1 :).
What is the Double/Triple Strategy?
The Double/Triple strategy is a confluence-based strategy that looks for multiple candles in the same timeframe that all point in the same direction. For example if there is a BULLISH Doji on the 15m EUR/USD and a BULLISH Hammer on the 15 AUD/USD. A triple is when the EUR/USD, AUD/USD and GBP/USD all line up together and are considered stronger than a double.
How do I detect new Double/Triple signals with CandlePro?
Great question! Detecting new double/triple signals with CandlePro is easy – just search for new candles like you normally would and any double or triple signal will be noted with this symbol:
Here we can see an example of a double EUR/USD and GBP/USD symbol:
What are the entry and exit rules for this strategy?
These are basic rules. Adapt as you see fit for your trading strategy and other factors such as trend, quality of signal, etc.
1) Enter trade in the direction of the signals
2) Place stops at least as far away as the CandlePro recommend Min SL found on the Performance Report
3) Have tiers of targets with the 1st target equal distance with the SL or at the Max recommend TP level (in Performance Report) – whichever is closer. At this level you can either take profit if you are scalping OR move SL to break-even to eliminate risk in the trade. Place 2 more targets at appropriate S/R levels, and at each target move your SL up to the previous target level (so for example at T2 I would move my SL to T1).
Note: The best results always come from looking at the charts and using support/resistance levels that make sense, but for those that want a more cookie-cutter approach these are the steps I recommend.
Three Tips for Better Performance
1) EU+GU doubles are better performers. The system is setup to detect a double on EU+GU, EU+AU or AU+GU, BUT not all of these combinations are created equally. By far and away the EU+GU signals are the most powerful, representing much more volume than any AU combination. That doesn’t mean you can’t trade an AU double – it just means the setup (including trend, price action, etc) has to be cleaner than an EU+GU setup.
2) A triple should be viewed as an EU+GU with a AU as a kicker (in poker a ‘kicker’ is a side card that breaks ties between competing hands). That means trade the EU+GU as the primary, AU is extra confirmation and an AU trade should be taken based on the chart.
3) As with everything in forex looking for more confluence – rejection or breakouts of support/resistance, trade with the trend, look at different timeframes, look for signals with good RR ratios. In the FX markets every little drop helps. Remember, it is all about stacking the odds in your favor.
Rather than re-invent the wheel here with trade examples I’m going to point you to Neil’s (@ukfitness) CP blog where he has been successfully using this strategy for almost 2 months now. Great job to Neil for keeping such a good trade journal and for identifying a winning strategy.
Doubles and triples are powerful cross-pair signals that work because they reflect underlying shifts in currencies. Combining them with forex fundamentals such as money management and trend trading are yet another way CandlePro will help you improve your trading.