3 Candlesticks High-Low: Price Action Scalping

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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.

3 Candlesticks Scalping Buy Strategy
Figure 1: Buy Signal – 3 consecutive bullish candles indicate momentum

Sell Trade

Open Sell immediately after the third bearish candle closes.

3 Candlesticks Scalping Sell Strategy
Figure 2: Sell Signal – 3 consecutive bearish candles indicate momentum

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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