I love this strategy. It’s simple. Precise. And brilliant in its logic. It brings together the most important factors that shape price and uses them in a way that squeezes the move for every last drop.
Do you want clear trading signals every day? Do you want to know and understand your algorithm step by step? Are you ready to clear out all the junk accumulated from the “gurus” and keep only concrete, results-oriented actions? If your answer is “yes,” this is the strategy. You can use it in Forex, but in my experience it shines even more in the crypto market.
Trading conditions for “Three in One”
- Timeframe: H1 (1-hour chart).
- Assets: major Forex pairs and the top 30 cryptocurrencies.
- Leverage: from 1:10.
- Risk management: 1 lot per 10,000 dollars of capital (or 1% of capital on the stop loss).
How to trade it?
Open the 1-hour chart of your chosen instrument (up to 5 at a time). Look for a large candle that, because of its size, engulfs the bodies of the next 3 candles. In other words, you have 3 candle bodies inside ONE single candle. Hence the name.
Then mark 2 levels: the high and the low of the combination of those 4 one-hour candles. The close of a one-hour candle beyond one of the levels is our entry point:
- if the candle closes above the high, we buy;
- if the candle closes below the low, we sell.
Trade management
The stop loss order goes behind the signal candle. The take profit is equal to 2 stop losses. The stop moves to breakeven when price travels a distance equal to the size of the stop.
No strategy wins every time. The strength of “Three in One” is that the take profit is double the stop: you don’t need to win most of your trades for the numbers to work out. Try it first on a demo account and keep a journal of every signal.
