16# Lucky Spike Forex Trading System

Submit by JanusTrader

 

Time Frame all time frame

Currency Pairs: Majors.

 

What 's Lucky Spike? An Pattern with The shadows are longer than usual. Preferably, the trading range is at least three times longer than the body. The longer, the better.

Sometimes it looks like the Morning Star, Shooting Star, Hammer, Inverted Hammer, Doji, etc. A spike showing after strong trend signals that the trend is going to reverse or pause. Neither buyers, nor sellers dominate to drive the market higher or lower. Every extremely quick trend reversal is initiated by a spike.

 

 

Bearish Signal

1. Strong downtrend.

2. Lucky Spike, Buy!

3. Place Stop Loss just below the Lucky Spike shadow.

4. Take profit on the next candlestick's close.

 

 


Bullish Signal

1. Strong downtrend.

2. Lucky Spike, Buy!

3. Place Stop Loss just below the Lucky Spike shadow.

4. Take profit on the next candlestick's close.

 

 

After a spike, there is often a longer candlestick – bullish after strong downtrend, or bearish after strong uptrend. Not every time, but it happens far more often than not. Whether the trend has reversed or not, trade just one candlestick for a few pips profit. That's easier and more effective than chasing the trend or watching how it is turning against you on the next candlestick. 
Can be used with the smallest time-frame as well as daily, weekly or even monthly time-frame. You trade no more than one candlestick. Enter on the open and exit on the close. 

 

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