This is the “Sparrow Trading System,” which is a simple and popular trading system shared completely free within the Vietnamese Forex community by FXCE. This system is automated through configuration on FXCE Giga.
If you are not familiar with this trading system, you can refer to the FXCE YouTube channel here.
Trading Strategy The Sparrow method consists of 3 EMA lines: 8, 13, 21, combined with either an Engulfing Candle or a Pin bar reversal candlestick pattern.
Buy when the price is above the 3 EMA lines, and EMA8 > EMA13 > EMA21, and either an Engulfing Candle or a bullish Pin bar appears, with the closing price above EMA8. image
Sell when the price is below the 3 EMA lines, and EMA8 < EMA13 < EMA21, and either an Engulfing Candle or a bearish Pin bar appears, with the closing price below EMA8.
Enter only one trade at a time.
- Set the stop loss below/above the low/high of the previous candlestick.
- Take profit with a risk-to-reward ratio of 1:2