my absolute most favorite hands down the
best candlestick formation that i trade
and i've been trading it for years is
the three line strike so in this video
i'm gonna teach you all about the three
line strike and how efficient it is and
what it actually means to trade a
three-line strike
[Music]
welcome back to the channel everybody my
name's artie and this is the moving
average a show where we discuss
everything day trading to keep you
profitable what is the number one rule
of day trading come on say it with me
the trend is your friend when price is
trending in a certain direction it will
always retrace a little bit and then
continue in that direction how do you
know when that retracement is over it's
usually a three-line strike a three-line
strike is depicted like this three
candles in one direction faking out the
move and then one big candle engulfing
down or up that is a trend continuation
move i'm going to keep this video under
five minutes so that you guys can get to
trading as soon as possible on a demo
account with this and then move to a
live account all right
new trends usually start with a massive
huge moving candle this candle right
here was about 25 pips this is a
momentum moving candle the previous
trend was an uptrend this candle right
here broke that trend which subsequently
made it lose its market structure
preventing it from making higher highs
and higher lows and the next high was a
lower high thus meaning a new trend is
forming if you simply took
every single three line strike now this
is on a five minute chart we have one
two three four five six seven eight
three line strikes let's put two more
trades up and we can't take that last
one because it goes against the rules
which i will explain in just a minute so
within 14 hours and 20 minutes
trading with the trend only getting
three line strikes you had one two three
four five six seven eight profitable
trades every single one of these trades
entered at the close of a three line
strike with a 10 pip stop loss and a 20
pip take profit so if you risk 1 of your
account for a 2 gain that means that in
14 hours you could have gotten 16 profit
on your account in less than one day
during this entire thing you can see
that market structure was never broken
it continued to make higher highs and
higher lows once it got to here it broke
market structure that right there is the
end of a trend now just for reference i
would not take every single one of these
trades because i strictly trade london
session london open starts at 9 00 a.m
london time i'm on the charts around 6
a.m london time so from 6 a.m till 10
a.m that is my trading window this is
just an example of all of the trades
that happened during this trend the
reason this trade took so long is
because of low liquidity during asian
session or tokyo session so what you're
looking for
is three bullish candles and one bearish
candle enter on close of candle 10 pip
stop loss 20 pip take profit second
entry right here
three candles up one candle down enter
it close of candle ignore three line
strikes in the opposite direction of a
trend you are only trading with the
trend with this strategy three candles
up one engulfing candle down enter trade
at close of candle always wait for close
of candle do not get in early don't
force a trade three candles up one
engulfing down enter again and again and
again and again this last one right here
i would not take because that engulfing
candle is too big for my liking i like
it to fit within 10 pips this one candle
was 11 pips which means my stop loss
would have to be up here which is a 15
pip stop loss which i'm uncomfortable
with when it comes to scalping because
then i'm looking for a 30 pip move which
i know is harder to get than a 20 pip
move so market structure was broken
right here so we are looking for the
next uptrend right now we are looking
for bullish three line strikes we only
got one during this uptrend before it
broke market structure and failed to
make higher highs which means we are now
looking for a downtrend because the
market is cyclical enter
10 pip stop loss 20 pip take profit and
you keep on doing this depending on what
the trend is doing if it breaks market
structure you are looking for the
opposite trend now this is not an end
all be all 100 winning strategy because
as you can see here with a 10 pip stop
loss and a 20 pip take profit
you got stopped out right here but then
you got another entry right afterwards
10 pip stop loss and a 20 pip take
profit then you got stopped out again as
the market failed to continue the trend
breaking market structure and now you're
looking for uptrend so then you will
only take the bullish three-line strikes
until that market structure is broken
this consistently gets me a 70 to 75 win
rate when i trade during my market hours
if you back test this throughout every
single session and get a hundred back
tested trades in you will see which
session it works the best on and which
currency pair you prefer i like
australian dollar and us dollar as well
as gbp usd i talk about three line
strikes in like 35 to 50 percent of my
videos
it is my end-all be-all favorite way to
trade so if you guys want to try this
you know exactly what to do watch this
video five six fifty-five times whatever
you prefer get this in your head follow
market structure when the structure
breaks look for a new trend it's going
to be a short trend or a long trend just
keep trading that trend until the market
structure is broken then look for the
new trend and follow those three line
strikes in either direction if you guys
enjoyed this video and you like the way
that i teach i would really appreciate a
big fat thumbs up on this video it helps
me a lot and keeps me motivated to make
more videos for you guys and if you want
to learn more about this 5-minute
strategy click this video right here and
we will see you in the next one