DAX Hourly Strategy Using Three Consecutive Candles

Summary

This intraday strategy for the DAX uses three consecutive candles of the same color as its directional condition. On the one-hour chart, it allows a long entry at noon when the current and prior two candles have all closed above their opens. It allows a short entry at 16:00 when those three candles have all closed below their opens. The example specifies one contract per trade, a 30-point stop, and a 45-point target, with positions flattened before the end of the day.

The document identifies a spread assumption and the trading venue, but provides no backtest results, sample period, or discussion of slippage and execution. Its fixed entry times make the rules specific to the stated hourly schedule and market setup. The stop and target are described as settings rather than as parameters supported by comparative evidence. The candle sequence is a simple momentum signal; the document does not explain why the selected times or thresholds should generalize beyond this example.

Key ideas

• The strategy looks for three consecutive bullish or bearish hourly candles.
• Long entries are restricted to noon and short entries to 16:00.
• The example uses a one-contract position with a 30-point stop and a 45-point target.
• Positions are scheduled to close before the end of the trading day.
• No performance testing or robustness evidence is included.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.