The Master Candle trading strategy is famous for the fact that it provides clear patterns and also helps in the identification of breakout points, making it especially useful for traders in the long run.
It is always useful to follow a certain set of guidelines or rules when using any trading strategy and the same is true for the Master Candle trading strategy. Following is a brief set of rules which should be kept in mind when using this particular trading strategy.
It is also worth mentioning here that trading with the Master Candle is not a smooth road and in fact, some experts argue that this particular strategy gives a considerable number of false breakouts. This is especially true in the case of volatile pairs involving JPY. Hence, you must be looking for the so called Scouting Parties.
These are the candles which get reversed after breaking through the Master Candle which can, of course, lead to failed and losing trades. For this reason, some professional traders avoid entering on the first break of Master Candle. Instead, they wait till the formation of a scouting party and then enter after price breaks out of the scouting party.
It is true that the Master Candle is considered to be one of the simplest trading strategies and it is widely used because of this. Moreover, it is also known to provide favorable results.
However, the fact of the matter is that the results are not identical everywhere. Each trader trading in the FOREX market has his own style of decision-making and trading, hence, it is expected for results to differ even when following the same strategy.
Therefore, it is strongly recommended to develop your own understanding of the Master Candle trading strategy and master it with a trial and error approach. Take real life scenarios and make your decisions according to your experiences. Slowly, your knowledge and skills will be refined and you will be in a better position to make use of the Master Candle trading strategy.
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