3 candles reversal intraday system For MT4

3 candles reversal intraday  system For MT4

Table Of Contents:

  1. 3 candles reversal intraday system For MT4
  2. The 3 Candles reversal intraday system – Long positions
  3. The 3 Candles reversal intraday system – Short positions
  4. Is the 3 Candles reversal intraday system good for you?


Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.


The 3 candles reversal intraday system For MT4 is a strategy that basically pulls out one of the candlestick chart patterns and uses it as an isolated trading strategy. As anyone with a bit of experience in trading might know, that the real markets that are not that objective. The changes in the market conditions can many a times invalidate chart patterns and for that matter even a candlestick pattern.

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As a way to illustrate this, take the bearish engulfing pattern. Typical knowledge says that a bearish engulfing pattern often signals that the market will move lower. But this is not often the case. Many a times, candlestick patterns can be invalidated, and the market will continue to baffle the trades.

In this context, the 3 Candles reversal intraday system is rather redundant and looks like a quick fix trading system. In this trading system, traders need to be quite aware of the fact that they should take into account the entire market context.

This means, traders should also pay attention to the trends and the underlying factors behind them. Using the 3 Candles reversal intraday system as a stand alone trading system can lead to disastrous results and here is why we do not recommend the 3 Candles reversal intraday system to everyone. If you like price action based trading then, the 3 Candles reversal intraday system might work for you, provided you also bring in your expertise of trading the markets. But for a beginner or someone who simply wants to follow the rules, the 3 Candles reversal intraday system is certainly one to avoid.

The 3 Candles reversal intraday system makes use of three indicators. The first is the pivots daily indicator. As the name suggests, this indicator plots the daily pivot levels on the price chart. These levels are meant as potential take profit levels for your trades.

We then have the reversal indicator. This indicator is a custom one which plots up and down arrows consequently. This happens when there are three consecutive bullish or bearish candlestick patterns.

The general consensus is that when you see a pattern of three consecutive bullish or bearish candlesticks, the market will change direction. But as we illustrated earlier, this rule is not set in stone. Therefore, if you blindly take the signals from the reversal indicator, it will lead to losses.

Finally, we also have the JMO indicator. This indicator looks somewhat similar to a Stochastics oscillator. It is used to determine the trend strength and acts a filter for the signals given from the reversal indicator used in this trading system.

Let's now take a look at how you can trade using the 3 Candles reversal intraday system.

The 3 Candles reversal intraday system – Long positions




For long positions using the 3 Candles reversal intraday system, we should first ensure that the market is in an uptrend. Following this, wait for price to trade near one of the pivot levels from the daily pivots indicator. It is ok as long as price is trading near a support or the daily pivot level. It would also help if you look to the trend on the higher chart time frame to ensure that the trend is validated.

Following this, wait for the signal that is generated near one of the pivot levels. Then look to the JMO indicator which should be near the zero line and moving higher. Upon this signal, you can now take a long position at market.

Set your entry to the high of the recent candlestick and set your stop loss to a few points below the recent low. Then using the available pivot levels, set your take profit to the nearest resistance level. Bear in mind that the long entry should be as close as possible to the pivot line or one of the support levels. This is to ensure that you get a good risk to reward set up in the 3 Candles reversal intraday system.

The 3 Candles reversal intraday system – Short positions




For short positions using the 3 Candles reversal intraday system, we should first ensure that the market is in a down trend. Following this, wait for price to trade near one of the pivot levels from the daily pivots indicator. It is ok as long as price is trading near a resistance or the daily pivot level. It would also help if you look to the trend on the higher chart time frame to ensure that the trend is validated.

Following this, wait for the signal that is generated near one of the pivot levels. Then look to the JMO indicator which should be near the 100 level and moving lower. Upon this signal, you can now take a short position at market.
Set your entry to the low of the recent candlestick and set your stop loss to a few points above the recent high Then using the available pivot levels, set your take profit to the nearest support level. Bear in mind that the short entry should be as close as possible to the pivot line or one of the resistance levels.

Is the 3 Candles reversal intraday system good for you?


In conclusion, the 3 Candles reversal intraday system is certainly not a simple trading system as it looks like. Traders need to be aware that the indicator is prone to giving false signals. So besides making use of the available indicators in the 3 Candles reversal intraday system strategy, you also need to apply your own logic.

For this reason alone, we do not recommend that you use the 3 Candles reversal intraday system if you do not know how the markets work or how to trade. Identifying trends and reading the market context is very important that will determine the success of your trading with the 3 Candles reversal intraday system.

Because the 3 Candles reversal intraday system uses the candlestick patterns, you can use this strategy on just about any chart time frame of your choice. While the template is clean and simple you will get easily confused if you monitor more than two or more instruments.

Download the complete system description and the files here:

FREE 3 candles reversal intraday system

Download the FREE 3 candles reversal intraday system for MT4.

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