3rd Candle Indicator
Platform: MT4 Type: Scalping Last update: September 15, 2024The 3rd Candle is a scalping indicator for MT4 displaying buy/sell arrows based on the three candles strategy. This trading system is about specific, three candlestick pattern, where the first two define a trend direction and the last one act as trigger confirmator. Please note that the indicator always performs calculations on the last three bars, thus there may be multiple signals in a row.
The first impression is there are lots of potential entries provided (typically for scalpers). The tool is designed to catch small-movements often, in order to build profit with small gain over time. Nonetheless, it would be good to filter out noise and increase probability rate. This can be achived by smart combination with other technical analysis gauges.
Settings suggestion
Change option “FilterBullBearCandle” to true, because this seems to increase to efficiency of signals and also reduce their amount.
EUR/USD M15 example chart
3rd candle in conjuction with UF2018
It’s good to onboard any overall trend indicator like UF2018 that shows market bias with simple visual clue. In the below chart you can see it’s clearly bearish (red readings) and only sell arrows should be taken. That way it was possible to avoid these counter-trend and unprofitable trades.