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The Z-Candle Plus strategy
The Z-Candle Plus strategy is based on the Z-Candle system designed by the Italian trader Alessandro Zicolella. The Z-Candle charts work like Heikin Ashi charts but, according to their Italian creator, they have several additional advantages.
The following elements are typical for the Z-Candle Plus strategy:
- The signals are given by the unique Z-Candles.
- The Z-Candles are combined with Renko charts.
- A quality setting allows the trader to determine the number of signals.
- A simple visual aid assists the trader.
The Z-Candle Plus strategy can be used for day trading and scalping.
|Suitable for||: Market indices (DAX, DOW...)|
|Instruments||: Futures and CFDs|
|Trading type||: Scalping and day trading|
|Trading tempo||: Several signals per day|
|Using NanoTrader Full||: Manual or (semi-)automated|
The strategy in detail
The Z-Candles can be combined with any type of main chart (Renko, range bar, candles …). The strategy’s Italian designer, however, strongly recommends using Renko charts.
When to open a position?
A signal occurs when:
- an inversion (colour change) of the Z-Candles occurs, and
- the inversion candle is a hammer candle.
The time filter only allows signals between 09h10 and 18h00. The trader can change these values.
Also unique is the ‘quality’ setting for the inversion candle. A lower quality setting results in more signals of a lower quality. A quality setting of 4 or less is considered low quality.
Tip: Below the Z-Candles a visual aid in the shape of vertical green/red bars appears. The aid shows all inversion candles, including those which are rejected by the time filter.
When to close a position?
The open position is managed by a profit target and a periods high-low stop. The profit target is set to 0,2%. Position are not kept overnight. Any position still open at 21h00 will be closed automatically by the flat filter at the market price if (semi-)automated trading is activated.
shows the Renko chart at the top, the unique Z-Candles in the
middle and the visual aid at the bottom. The purple zones in
the main chart indicate the period during which the filter
shows two trades. A short sell and a buy. The unique inversion
Z-Candles which trigger the trades are visible below the Renko
chart. Both trades reach their profit target.
Using the NanoTrader Full follow these steps:
- Select the financial instrument you want to trade and open
the Renko chart.
- Select the strategy in the "WHS Store" folder.
- The first step is to set the Renko chart to the correct
span. Open a daily chart of the index you want to trade and
find its 30-day ATR in points. Divide the ATR value
by 20. This gives the span for the Renko chart. For example,
suppose the 30-day ATR of the DOW is 472 points. The correct
span setting for the Renko chart is therefore 24 (= 472/20).
The Z-Candles adapt automatically to the Renko chart.
- If required, adapt any other parameters as described above.
- Select your paper account or your real account.
- If you want to trade semi-automatically (open position
manually, close position automatically), activate
TradeGuard+AutoOrder in the chart. If you want to trade
automatically, activate AutoOrder in the chart.