Question: What would be the strategies for Belt Hold pattern appears in Candlestick chart on MT4?
Here is an example of strategies for Belt Hold with Stochastics and EMA(20), when during the course of a decline, the appearance of the Belt Hold pattern filtered by Stochastics 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 closes above the EMA(20) provided that the distance travelled is at least equal to the length of the pattern.
- Move the protective stop-loss at the middle of the pattern.
- Close the remaining 20% when price reaches the 200% of the length of the pattern.
- Move the protective stop-loss at the top of the pattern.
- Close the remaining 20% of the position when price reaches 300% of the length of the pattern.
- Close the remaining 10% of the position at the presence of a reversal candlestick or when price closes below the EMA(20).
- Other combinations may be applied