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  • 3 Bar Strategy PDF

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    Aditya Narayan Das
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    The document outlines rules for entering long and short positions in a trending market. For a long position, the rules specify identifying an uptrend, a signal bar with lower highs after a correction, entering the position when price breaks above the high of the signal bar, placing an initial stop loss below the low of the signal bar, and setting a limit based on money management rules. Similarly, for a short position the rules specify identifying a downtrend, a signal bar with higher lows after a correction, entering the position when price breaks below the low of the signal bar, placing an initial stop loss above the high of the signal bar, and setting a limit based on money management rules.

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    3 Bar Strategy.pdf

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    The document outlines rules for entering long and short positions in a trending market. For a long position, the rules specify identifying an uptrend, a signal bar with lower highs after a correction, entering the position when price breaks above the high of the signal bar, placing an initial stop loss below the low of the signal bar, and setting a limit based on money management rules. Similarly, for a short position the rules specify identifying a downtrend, a signal bar with higher lows after a correction, entering the position when price breaks below the low of the signal bar, placing an initial stop loss above the high of the signal bar, and setting a limit based on money management rules.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    3 views1 page

    3 Bar Strategy PDF

    Uploaded by

    Aditya Narayan Das
    The document outlines rules for entering long and short positions in a trending market. For a long position, the rules specify identifying an uptrend, a signal bar with lower highs after a correction, entering the position when price breaks above the high of the signal bar, placing an initial stop loss below the low of the signal bar, and setting a limit based on money management rules. Similarly, for a short position the rules specify identifying a downtrend, a signal bar with higher lows after a correction, entering the position when price breaks below the low of the signal bar, placing an initial stop loss above the high of the signal bar, and setting a limit based on money management rules.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Rules for long position

    1. The market is in an uptrend. This could be identified by the fact that the price is above the 50-period Moving
    Average; MACD or Momentum are above 0; or ADX is above 25 an +DI is above -DI.
    2. After a correction of the up move the last three bars have lower highs. The last of these three bars is marked as Signal
    bar.
    3. Long position is initiated when the price breaks 2-3 pips above the high of the Signal bar.

    4. After the position is open an initial stop loss order is placed 2-3 pips below the low of the signal bar.
    5. A limit order is placed according our Money management rules. We can close the position when one of our indicators shows
    that the uptrend is over.

    Rules for short position

    1. The market is in an downtrend. This could be identified by the fact that the price is below the 50-period Moving Average;
    MACD or Momentum are below 0; or ADX is above 25 an -DI is above +DI.
    2. After a correction of the down move the last three bars have higher lows. The last of these three bars is marked as
    Signal bar.
    3. Short position is initiated when the price breaks 2-3 pips below the low of the Signal bar.
    4. After the position is open an initial stop loss order is placed 2-3 pips above the high of the signal bar.
    5. A limit order is placed according our Money management rules. We can close the position when one of our indicators shows
    that the downtrend is over.

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