Question: How would price move when Three White Soldiers appears in Candlestick chart on MT4?
Here is an example of strategies for Three White Soldiers with RSI and SMA(20).
When during the course of a decline, the appearance of Three White Soldiers filtered by RSI at the oversold area.
One could consider buying when the next candle exceeds the high price of the pattern.
Place a protective stop loss at the bottom of the pattern.
You can consider the following actions, bearing in mind that a Take-Profit strategy is heavily dependent on the trading profile of each individual.
- Close 50% of the position when price travels 100% the last Long White Candle.
- Close the remaining 25% when price reaches the 200% of the length of the last Long White Candle.
- Move the protective stop-loss at the top of the pattern.
- Close the remaining 25% of the position at the presence of a reversal candlestick or when price closes below the SMA(20) or when price travels 300% of the length of the pattern, whichever happens first.
- Other combinations may be applied.