The Railway Tracks Pattern Trading Strategy (How To)
The railway tracks pattern Forex trading strategy is another price action trading strategy that is based on analyzing the lengths of two candlesticks of similar lengths and one of candlesticks must be bullish and the other one is bearish. When you see them together they look like railways tracks and thus name…
There are two types of railway track pattern: bullish and bearish. Consider the railway tracks pattern as trend reversal patterns.
Bearish Railway Track Pattern (noted on 1 hour chart- higher time frames are better for this noted reversal pattern)
A bearish railway track pattern has the first candlestick bullish and the second candlestick pattern bearish.
that fact that there’s a sudden change from bullish to bearish candlestick should be a good indication that there might be a bearish trend forming if you see it in levels of resistance, pivot point, downward trend lines, fibonacci levels etc.
Currency Pairs To Trade?
You can trade any currency pairs with this trading system.
Time frames Required To Trade?
I suggest you use the daily, 4 hr and 1 hr time frames only.
Any Forex Indicators Required?
You don’t need any Forex indicators for this.
Rules: Selling Trading Rules Of The Railway Tracks Pattern Forex Trading Strategy (Bearish)
place a sell stop pending order 1-2 pips below the low of the bearish railway tracks pattern (2nd candle)
stop loss can be placed 12-20 pips above close of bearish 2nd candle, target should be 1:2 to 1:3 or risk reward of 2 xs or 3 xs on a scalp or day trade.
risk reward of 1:3 can be used to calculate your take profit target level or if you want to aim for a little bit more, use previous swing lows as your take profit target levels. Or you can also use trailing stop to ride out the trend. *Good luck and risk management is always #1.
There are two types of railway track pattern: bullish and bearish. Consider the railway tracks pattern as trend reversal patterns.
Bearish Railway Track Pattern (noted on 1 hour chart- higher time frames are better for this noted reversal pattern)
A bearish railway track pattern has the first candlestick bullish and the second candlestick pattern bearish.
that fact that there’s a sudden change from bullish to bearish candlestick should be a good indication that there might be a bearish trend forming if you see it in levels of resistance, pivot point, downward trend lines, fibonacci levels etc.
Currency Pairs To Trade?
You can trade any currency pairs with this trading system.
Time frames Required To Trade?
I suggest you use the daily, 4 hr and 1 hr time frames only.
Any Forex Indicators Required?
You don’t need any Forex indicators for this.
Rules: Selling Trading Rules Of The Railway Tracks Pattern Forex Trading Strategy (Bearish)
place a sell stop pending order 1-2 pips below the low of the bearish railway tracks pattern (2nd candle)
stop loss can be placed 12-20 pips above close of bearish 2nd candle, target should be 1:2 to 1:3 or risk reward of 2 xs or 3 xs on a scalp or day trade.
risk reward of 1:3 can be used to calculate your take profit target level or if you want to aim for a little bit more, use previous swing lows as your take profit target levels. Or you can also use trailing stop to ride out the trend. *Good luck and risk management is always #1.