Three Consecutive Candle Closes as a Scalping Signal

Summary

This simple scalping indicator issues a long signal when the latest four closes form three consecutive increases, and a short signal when they form three consecutive decreases. It presents the buy and sell conditions as separate indicators, each returning a binary signal when its close sequence qualifies. The rule uses closing prices alone and does not specify an instrument, chart timeframe, order type, or holding period. The author explicitly cautions against using the signal on its own and recommends combining it with other filters or indicators. The document offers no empirical results, parameter comparisons, or guidance on exits, costs, or risk controls. As a result, it describes a basic short-term momentum trigger rather than a complete or validated trading strategy.

Key ideas

• Three rising close-to-close moves trigger a long signal.
• Three falling close-to-close moves trigger a short signal.
• The buy and sell conditions are presented as separate binary indicators.
• The author recommends combining the signal with other filters rather than trading it blindly.
• No backtest, exit rule, or risk-management method is provided.

Tags

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