3 Candlesticks High-Low: Price Action Scalping
This pure price action strategy eliminates lag indicators by focusing on candlestick momentum. Designed for the M5 timeframe on major pairs, it uses a simple pattern of three consecutive candles to signal entry points, making it ideal for rapid scalping sessions.
Strategy Profile
Timeframe
M5
Pairs
EUR, GBP, AUD
Type
Price Action
1. Pattern Recognition
No indicators are needed. Simply observe the chart for sequential candle formation:
- Long Entry: Three consecutive Bullish (Green/White) candles form in a row.
- Short Entry: Three consecutive Bearish (Red/Black) candles form in a row.
2. Execution
Buy Trade
Open Buy immediately after the third bullish candle closes.
Sell Trade
Open Sell immediately after the third bearish candle closes.
Trade Management
- Stop Loss: At the High (Sell) or Low (Buy) of the second candle in the sequence.
- Take Profit: 6 points (EURUSD), 8 points (AUDUSD), 10 points (GBPUSD).
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