The #3CR strategy or method has evolved over the years as the author (BestForexMethod) has tried and tested various indicators. However, there is a core procedure that a trader can use to identify a #3CR trade set up. We've written another article that covers advanced techniques once you have mastered the basics.
There are 5 important steps to the #3CR strategy set up as follows:
Define levels of recent support and resistance
Determine trend using the Dragon ribbon
Watch for high price momentum using RSI Histo
Confirm high price momentum with TMA Slope
Wait for a 3CR to enter trade
More information on the strategy
If you want to learn more, go to BestForexMethod on Twitter or see more videos at the BestForexMethod YouTube channel
1. Support & Resistance
Mark areas of recent support and resistance on your chart. You're interested in buying on closes above resistance and selling below support.
2. Trend
Always trade with the trend which is determined by the Sonic R Dragon (or The Wave). To go long (buy), the price needs to close above the upper EMA band and the middle EMA must be pointing between 12:00 and 14:00 i.e. sloping upwards. To go short (sell), price closes below the lower band and the middle EMA is pointing downwards towards 16:00 and 18:00.
3. Price Momentum
This is measured by RSI Histo which is a modified version of the standard RSI indicator. RSI Histo is only interested in periods of high momentum and the indicator shows when this occurs
4. Price Momentum Confirmation
This is achieved with the TMA Slope True Scalper indicator which should confirm RSI Histo. The TMA Slope measures the strength of price direction or trend. It also helps to identify when a trend is weakening or strengthening. Rising RSI Histo bars should be accompanied by rising TMA Slope bars and vice versa. If the two indicators disagree, then price momentum is not confirmed.
5. Three Candle Reversal
This price action pattern serves as confirmation that a trend reversal is under way.
6. Putting it all together
You can get all of the free BestForexMethod (BFM) indicators as well as our own custom built indicators with enhanced functionality to help you identify the best #3CR trading setups.
More information on the strategy
If you want to learn more, go to BestForexMethod on Twitter or see more videos at the BestForexMethod YouTube channel
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