Also, this version makes use ofan adjusted stop loss size (from the original 20% of the first candlestick to 40% of its length) on both USD/JPY and GBP/JPY.
Note that I’m assuming 1% risk per position in crunching the percentage gains and losses.
This pair caught 23 valid inside bar signals for the period, winning 19 positions or 79.17% of it all.
That’s even better than its previous 79.17% win rate in Q3, but did it catch bigger wins?
Well, not exactly.
The pair was able to rack up 238 pips or a 20.54% gain, just shy of the earlier 257-pip or 23.94% win in Q3. Still not bad!
It had another impressive winning streak of 15 trades that bagged 17.62% in gains, erasing the 3.39% loss snagged during its longest losing streak of 3 trades.
Its average gain of 1.30% is also slightly larger than its average loss of 1.05%, which gives it a positive expectancy.
Momentum investing is a system of buying stocks or other securities that have had high returns over the past three to twelve months, and selling those that have had poor returns over the same period.
https://en.wikipedia.org › wiki › Momentum_investing
was able to end up with a 476-pip or 31% gain for Q4 2021. That comes pretty close to its stellar 33.36% win in Q3, adding to the 16.96% gain in Q2 and 22.98% win in Q1. That's a grand total of 104.3% in winnings for the whole year!
The inside bar pattern is characterised by two consecutive candlesticks that often suggest a period of consolidation or indecision in the market. Traders and analysts can find value in identifying the setup as it can provide insights into potential future price movements.
Momentum trading is a technique where traders buy and sell financial assets after being influenced by recent price trends. They look to take advantage of upward or downward trends within the financial markets until the trend starts to fade.
This pair caught 23 valid inside bar signals for the period, winning 19 positions or 79.17% of it all. That's even better than its previous 79.17% win rate in Q3, but did it catch bigger wins? Well, not exactly.
The Inside Bar pattern works best on a daily time frame. Any timeframe shorter than this does not provide accurate signals as the prices are influenced by noise, and the pattern may occur several times without any solid market signal.
The Moving Average Convergence Divergence (MACD) is one of the most popular momentum indicators. The MACD uses two indicators – moving averages – turning them into an oscillator by taking the longer average out of the shorter average.
Momentum trading is not for everyone, but it can yield good returns. It takes discipline to trade this way because the trade must be closed at the first sign of weakness, and the funds must be immediately placed into a different asset showing strength.
Momentum investors hold the belief that once a trend, whether upward or downward, takes shape, it is likely to persist for a certain period. Their strategy involves purchasing assets on the rise and divesting those on a downward trajectory, to capitalise on and profit from these trends.
If you are a scalper, you can use the inside bar in a 15-minute timeframe or lower. Using this forex trading strategy, you look for the inside bar in an uptrend or downtrend, wait for the pattern to fully appear, and double-check the price action through an indicator or support/resistance levels.
What are the Inside Bar and Outside Bar? Inside and Outside Bars are two prevalent candlestick patterns in technical trading. The 'Inside Bar' is characterized by a bar or candle that is entirely 'inside' the range of the preceding one, whereas the 'Outside Bar' completely 'overshadows' or 'engulfs' the previous bar.
When price initially breaks out from the inside bar pattern but then quickly reverses, creating a false-break, and closes back within the range of the mother bar or inside bar, we have a fakey pattern. So, think of it like this: Inside Bar + False-Breakout = Fakey pattern.
Like all other techniques based on candlestick patterns, the inside candle strategy is only as reliable as the confirmation you receive. So, it is best to pair it with other technical indicators.
Introduction: My name is Arielle Torp, I am a comfortable, kind, zealous, lovely, jolly, colorful, adventurous person who loves writing and wants to share my knowledge and understanding with you.
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