Forex trading signal about the acceleration of the trend

For profitable Forex trading it is very important to open a trade deal on time. In order to increase the efficiency of market entry there are various tools and methods available. Today I’ll tell you about one of them. This is a forex trading signal, which indicates the probable acceleration of the trend. When it appears, you can safely open an order, because the probability of closing it with a profit is quite high. The trend acceleration signals can be candlesticks. Which means not only their appearance, but also their location. That’s what they’re called – acceleration candles.

What are these acceleration candles

These are candlesticks that are formed after the appearance of signs of trend reversal. They have a small body. One of the shadows is long, the other is very short. The EA has a long lower shadow and a short upper shadow when moving upwards. It’s a bull SU. Correspondingly, the top shadow should be long on the downward movement, and the bottom shadow should be short.Look at an example of a bull’s candlestick:  

Emportant note: the size of the long shadow should not exceed the local extremum.

How to use acceleration candlesticks in trading

Track the forex trading signal on the daily chart of the currency pair chosen by the trader for trading. It can be formed after the spread pattern appears.

After the signal has appeared, let’s move to the hourly chart to open deals. Trading is carried out with the help of pending orders.

For upward purchases, we place a pending order five points above the short EA shadow on D1. Stop-loss is fixed. It’s 50 points. If a bullish acceleration candlestick appears on the hourly chart during the period when the price has not yet risen to the level of a pending order, then we open a market order. In this case, we place the stop-loss just below the local minimum on the H1.chart

You can use different variants for profit taking. The most conservative of them is the placement of take-profit at a level equal to the range of acceleration candles. And it is possible to transfer the deal into a lossless position when the price passes in the direction of an open order half of the distance equal to the EA. Then it is necessary to make a decision on profit taking depending on the market situation.

We do the same for sales, but with the appropriate corrections. We open a market order if there is a bearish acceleration candlestick on the hour chart. SL- slightly above the local maximum.

The forex trading signal about the trend acceleration appears on the daily price chart infrequently. However, if it is formed, it means that the trader has a real opportunity to make a profit.