The chart shows a bearish power candle, which signaled a landslide on the chart. This trade returned a massive
amount on the initial risk. It’s definitely a lucrative opportunity to take advantage of the moves that power
candles can warn us about.
As with most other price action signals, we prefer to trade power candles on the Daily time frame. We recommend
this because they are generally caused during times of high volatility, so it’s good to get the extra clarity
and stability from the daily candle using end-of-day trading strategies, rather than getting caught up in intra
day noise.As a Forex trader your job is not to make money; it is to be an expert at risk management. Risk/Reward
balancing of your trades is crucial to long-term growth in this profession. We mention this because Power Candles
have a fairly moderate risk profile due to the fact they only need tight stop loss levels.
However, the risk/reward mechanism is like a scale: if one end is more weighted, the scales tip and it leverages
the other end. What I am saying here is the higher the risk of a setup, the higher reward potential it will have.
The less risk the less reward.
May 31, 2022 1.3K 2
