The Randy Candles Method Strategy for MT4 is a Heiken Ashi candlestick and Moving average based trading system. Though this strategy is so simple to use, you should have proper knowledge about the Heiken Ashi candlestick before trading with this system. Along with that, you have to include the possible support and resistance level to get better entry and exit points. Along with the Heiken Ashi candlestick, we will use two types of Simple Moving Average with two different periods and shifts.
What Is the Randy Candles Method Strategy?
Randy candle’s method strategy is a forex trading system that is very profitable with simple trading rules. Randy candles are the key to this trading method.
Randy candles are small to moderate in size and have shadow above and below. Randy candles send alerts to a trader to indicate whether he should enter the market or not. Moreover, this strategy uses two Moving Averages to identify the possible upcoming market momentum. Overall, you can use this trading method as a trend trading and trend reversal strategy. Moreover, this strategy uses Heiken Ashi candlesticks to get a more precise outlook of the price.
What Is the Heiken Ashi Candlestick?
Heikin-Ashi signifies “average bar” in Japanese. It is additionally once in a while spelled Heiken-Ashi. While trading securities to foresee future prices and spot market trends, we can use the Heikin-Ashi method combined with candle charts.
Heikin-Ashi is really helpful to make candle charts more clear and trends simpler to analyze. Traders can utilize Heikin-Ashi charts to realize when the trend will continue and when it may reverse.
Most of the profits are initiated when markets are trending. Hence, it is important to anticipate trends effectively.
The Randy Candles Method Strategy for MT4
In this strategy, we will use multiple trading indicators to increase trading probabilities. However, the currency market is full of uncertainty where no one can guarantee 100 per cent of successful results. So, you have to build a trading method to provide you with the best outcomes from a set of trades.
Let’s look at the trading indicators that we are using for Randy Candles Method Strategy for MT4:
- SMA (Simple Moving Average) – Period 25, Shift 5, applied close.
- SMA (Simple Moving Average) – Period 3, Shift 3, applied close.
Let’s have a look at the trading indicator that we are going to use in Randy Candles Method Strategy for MT4:
In this strategy, we will use SMA rather than EMA. The thing that matters is that EMA emphasizes on most recent prices, while SMA places an equivalent load on all data points.
In technical analysis, SMA is one of the major indicators and typically the most straightforward moving average to build. An asset’s average closing price is considered through the Simple Moving Average (SMA) over a predefined period.
This trading system will use multiple SMA values to get the price outlook from a different angle. At first, we will identify the price direction with a higher valued SMA and then focus on lower value to see what short term traders are doing in the market.
Overall, when both SMA provides the same direction, we intend to take the trade with other conditions.
Bullish Trading Strategy
You can apply Randy Candles Method Strategy for MT4 on all the timeframes from 5 minutes to daily. However, to get better outcomes, apply it on the higher timeframes like H1 and H4 as it extracts the short-term impacts of the fundamental events.
You can also trade on any currency pairs, for example, EURUSD, GBPUSD, USDJPY, USDCAD, USDZAR, GBPJPY, USDHKD, USDNOK, USDSGD, etc.
Bullish Trading Conditions
- The Randy candle appeared on the chart.
- The alert candle crossed and closed over the Pink SMA.
- The bullish entry candle has appeared on the chart following the direction.
Entry
After ensuring all the trading conditions, you should open a buy trade as soon as the running candle closes. However, you can place a buy stop-loss order above the running candle with a few pips of a buffer.
Stop Loss
Place your stop loss underneath the randy candle with a 10 to 20 pips buffer. Otherwise, you can place a stop loss below the recent swing low.
Take Profit
You should take the profit by calculating the 1:5 to 1:2 risk-reward ratio. So, if your stop-loss is 20 pips, you should set the take profit at 40 pips. On the contrary, you can take the profit when the Heiken Ashi candle crosses the Pink line.
Bearish Trading Strategy
You can also apply Randy Candles Method Strategy for MT4 on the bearish trading. It also works on all the timeframes from 5 minutes to daily.
However, to get better outcomes, apply it on the higher timeframes like H1 and H4 as it extracts the short-term impacts of the fundamental events.
You can trade on any currency pairs, for example, EURUSD, GBPUSD, USDJPY, USDCAD, USDZAR, GBPJPY, USDHKD, USDNOK, USDSGD, etc.
Bearish Trading Conditions
- The Randy candle appeared on the chart.
- The alert candle crossed and closed below the Pink SMA.
- The bearish entry candle has appeared on the chart following the direction.
Entry
After ensuring all the trading conditions, you should open a sell trade as soon as the running candle closes. However, you can place a sell stop-loss order above the running candle with a few pips of a buffer.
Stop Loss
Place your stop loss above the randy candle with a 10 to 20 pips buffer. Otherwise, you can place a stop loss above the recent swing high.
Take Profit
You should take the profit by calculating the 1:5 to 1:2 risk-reward ratio. So, if your stop-loss is 30 pips, you should set the take profit at 60 pips. On the contrary, you can take the profit when the Heiken Ashi candle crosses the Pink line.
Conclusion
The Randy Candles Method Strategy for MT4 can be proved a profitable trading method if you can apply it properly.
Besides, you have to follow the proper money management rules as there is no guarantee that every trade will run into a profit.
