Over the years a lot of research has been done in identifying useful candlestick patterns which indicate the start or end of a trade. At Mudrex, users have access to over 80 different candlestick patterns. This strategy explains how to use them.
Candlestick patterns are used to identify the start or end of a trend. As a result, we can use candle patterns to ride a trend.
We will use the Marubozu pattern and the Harami Pattern in the current example.
- Buy when: Bullish Marubozu pattern appears
- Sell when: Bearish Harami signal appears
Creating the strategy on Mudrex
- Components: To make this strategy all we need is 2 pattern blocks one each to buy and sell. Below is how the blocks would look like:
- Final strategy visual: We would then go out and connect the pattern blocks with the buy and sell blocks to complete our strategy.
Testing the strategy
- Running on EOS/BTC -30m period from 1st Jan to 1st June gives a + 57.07% ROI
- Running on TRX/BTC - 6h period from 1st Jan to 1st June gives a +107.42% ROI
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