R3/F3 Method Forex Trading Strategy

The R3/F3 method forex trading strategy is a continuation price action pattern that can be used to gauge if the swing/trend will be continuing in the same direction, thus offering traders increased chance of raking in more profits.

Chart Setup

MetaTrader4 Indicators: FX_Fish.ex4 (default setting), HAMA_.ex4 (default setting), FRAMA.ex4 (default setting)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, Day

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

Download the R3/F3 Method Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy      

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets displayed:

  1. If the Rising Three price action pattern forms on the activity chart as shown by the candlestick formation 1, 2, 3, 4 & 5 (refer to Fig. 1.0), price is said to be continuing in its trend and in this case a bullish continuation pattern.
  2. The lime histograms of the FX_Fish.ex4 custom indicator aligning above the 0.00 signal line is a confirmation for a bullish trend.
  3. If the bars of the HAMA_ (mostly colored royal blue) custom indicator crosses the line of the FRAMA indicator bottom up and stays below, price is said to be bullish.

Stop Loss for Buy Entry: Place stop loss on the low of the HAMA_ bar representing candlestick 1.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following holds sway in the market:

  1. Take note of any possible bullish reversal price pattern that may develop, but wait for other custom indicators for exit or take profit confirmation.
  2. If the lime histograms of the FX_Fish.ex4 custom indicator readjust to form below the 0.00 signal level and also alters its color to red, an exit or take profit is advised (refer to Fig. 1.0).
  3. If the bars of the HAMA_ custom indicator crosses the line of the FRAMA indicator top downward to stay above the line of the FRAMA indicator, it is a trigger to exit or take profit.

Sell Entry Rules

Enter a sell if the following holds true:

  1. If the Falling Three price action pattern forms on the activity chart as shown by the candlestick formation 1, 2, 3, 4 & 5 (refer to Fig. 1.1), price is said to be continuing in its trend and in this case a bearish continuation pattern.
  2. If the red histograms of the FX_Fish.ex4 custom indicator aligns below the 0.00 signal line, price is said to be bearish.
  3. If the bars of the HAMA_ (mostly colored red) custom indicator crosses the line of the FRAMA indicator top downward and stays above the FRAMA line, price is said to be bearish.

Stop Loss for Sell Entry: Place stop loss on the high of the HAMA_ bar representing candlestick 1.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following rules or conditions take precedence:

  1. Watch out for any possible bearish reversal price pattern that may develop, but wait for exit or take profit confirmation from other custom indicators.
  2. If the red histograms of the FX_Fish.ex4 custom indicator readjust to form below the 0.00 signal level and at the same time alters its color to lime, an exit or take profit is advised (refer to Fig. 1.1).
  3. If the bars of the HAMA_ custom indicator crosses the line of the FRAMA indicator bottom up to align below the line of the FRAMA indicator, it is a trigger to exit or take profit.

Sell Trade Example

Fig. 1.1

Free Download

Download the R3/F3 Method Forex Trading Strategy

About The Trading Indicators

The HAMA_ indicator deploys a 2-color visualization (red and blue) scheme to deliver sell and buy signals respectively.

The Fractal Adaptive Moving Average abbreviated as FRAMA, is a technical tool for MetaTrader4 that was designed by John F Ehlers.

The FRAMA is a type of Adaptive Moving Average that deploys fractal geometry to dynamically fine-tune its smoothing period to fit the altering price action over a given time.

The FX_Fish.ex4 custom indicator is an oscillator that can be used in defining trend i.e. the lime & red histograms are both used to depict bullish & bearish trends respectively.

The Rising Three/Falling Three price action patterns are continuation patterns which indicate that the swing in the market is a bullish or bearish continuation pattern respectively.

Download The M1/M5 Forex Scalping Strategy Today!

This Incredible High Win Forex Scalping Strategy Will Trigger Only When There Is An Extremely High Chance Of A New Profitable Low Risk Trade To Take Place.

What are you waiting for? Start making pips today:

  • Up To 100 Pips Every Day
  • Works on all forex pairs and Bitcoin!
  • Low Risk Forex Scalping
  • Works on M1, M5 and UP