Master Candle strategy

 

Master Candle strategy: -

There are different ways of looking at this trading strategy but in its simplest from a master candle is a candle which contains the highs and lows of at least the next four candles after it.

The formation of a true master candle can see on a chart if the next four candles are consolidation inside of the tall master candle.

The master candle trading strategy is famous for the fact that is provides clear pattern and also helps in the identification of breakout points, making it especially useful for traders in the long run.

It is always useful to follow a certain set of guidelines or rules when using any trading strategy and the same is true for the master candle trading strategy. Following is brief set of rule which should be kept in mind when using the particular trading strategy.

You should not try to trade near a support or resistance SR zone.

1.        There should be no trade against a support /resistance zone that is closer than the master candles height.

2.       Only take a trade when a candle breaks the master candle high or low.

3.       It is recommended to always target the master candle size when exiting the trade.

4.       Place you stop loss order in the opposite direction of the entry at the other end of the master candle. So in a long trade the stop should be at the master candles law while in a short trade the stop should be at the master candles high.

It is strongly recommended to develop your own understanding of the master candle trading strategy and master it with a trial and error approach. Take real life scenarios and make your experiences. Slowly your knowledge and skills will be refined and you will be in a better position to make use of the master candle trading strategy.

Buy rule : -

 we will buy at the high of the master candle 5 ot 10 paisa buffer

Sell rule  :- 

we will sell at the low of the master candle .

Stop loss :-

 SL length of master candle