11# Outside Bar Forex Trading System
Submit by joy22
Bullish Outside Bar
The second bar engulfs the first bars High/Low range
The second bars "Open" must be below "Close" of first bar (first bar can be bull or bear)
Forex Indicator:OutSide bar is red (delete colur blue of indside bar)
Bearish Outside Bar
The second bar engulfs the first bars High/Low range
The second bars "Open" must be above "Close" of first bar (first bar can be bull or bear)
*** The second bar close is below first bar close (adding this rule matches with another version), so maybe it's a better setup.
How To Trade
Open and Close Price are far apart on the second bar
On Bullish Outside bar the longer the bottom shadow/wick the stronger the upward move
On Bearish Outside Bar the longer the top shadow/wick the stronger the downward move
The second bars open/close range (body of a candlestick) should be a lot larger than the range of the first bars open/close range
to place a pending buy stop order just above the high of Bullish Outside bar and a stop loss just below it. For a Bearish Outside bar place a sell stop order just below the low of the Bearish Outside bar and a stop loss just above the high of the Bearish Outside Bar.
