Kardec Trader breaks down a three-candle swing trading method: identify a swing high when the middle candle is highest, then enter when a candle closes through that level. The strategy uses higher highs and higher lows to spot uptrends and catch pullback reversals.
I use just a three candle swing system. So that means if I have a candlestick here and then I have another candlestick in the middle and then another candlestick here, to me this constitutes a swing high because there's three candles with the highest candle being a middle and a lower one on each side. So a market structure break means that we need to see a candle close through this high. So if we want to know if the market is in an uptrend, I want to see Price putting in higher highs and higher lows. Every time we get one these new higher highs. This tells me that the uptrend is continuing. And what we're looking for now of course is okay, we've just had an msb. My anticipation is even though price is pulling back, I'm expecting this trend to continue. We want to find point at which this pullback ends and the next leg of the uptrend continues because this is going to be where those high probability setups form.
