Strategies / Pattern / Three Candle Moving Average Pattern

Three Candle Moving Average Pattern

Buys after a green, red, green candle sequence where all prices sit above the current highest of the 20, 40 and 80 period averages, with the 20 period average above the other two. Closes the long when a bar's range spans the 80 period average.

PatternLong onlySwingGold4 hours

2.09Profit factor

2,802Net profit EUR

40.00%Win rate

225Trades

-646Max drawdown

12.45Avg trade

Best run of 37. Gold, 4 hours, spread 0.6, from run pf:2026-10-04-GOLD-4h.tsv:9.

Entry rules, long

Open, high, low and close of the last three bars are all above the current highest of the 20, 40 and 80 period averages.
The 20 period average is above both the 40 and 80 period averages.

Exit rules

A bar whose low is below and whose high is above the 80 period average closes the long.

Test conditions

Period	Up to 2026-10-04
Instrument	Gold, 4 hours
Spread	0.6 points
Starting capital	1,000,000
Costs	Spread only. Commissions and overnight financing are not included.
Bars	Up to 200,000 bars, fewer where the instrument has less history
Last tested	2026-10-04

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
GoldBest run	4 hours	2.09	225	40.00	2,802 EUR	-646
Nikkei 225	1 hour	1.36	682	34.60	27,656 USD	-6,082
DAX 40	1 hour	1.28	849	36.51	11,012 EUR	-2,670
Nasdaq 100	15 min	1.20	1,476	34.69	10,026 EUR	-2,467
USD/JPY	Daily	n/a	95	37.89	966,770 USD	-349,850
USD/JPY	1 hour	n/a	998	34.77	476,380 USD	-270,910
USD/JPY	30 min	n/a	1,386	35.86	450,280 USD	-175,640
USD/JPY	15 min	n/a	1,437	32.99	275,530 USD	-122,970
USD/JPY	10 min	n/a	1,489	32.57	247,860 USD	-108,500
EUR/USD	Daily	n/a	88	40.91	33,167 USD	-27,990
Nikkei 225	30 min	n/a	1,318	34.14	23,056 USD	-8,095
Nasdaq 100	Daily	n/a	94	45.74	14,464 EUR	-2,429
Silver	1 hour	n/a	830	30.72	14,321 USD	-14,303
Dow Jones	1 hour	n/a	299	38.46	10,693 EUR	-7,937
Nikkei 225	15 min	n/a	1,359	32.16	10,530 USD	-8,405
Brent Crude	Daily	n/a	36	36.11	9,366 EUR	-4,531
Nasdaq 100	1 hour	n/a	944	34.53	8,944 EUR	-3,134
Nasdaq 100	10 min	n/a	1,436	34.68	7,283 EUR	-4,296
DAX 40	Daily	n/a	81	41.98	6,990 EUR	-4,207
US Crude Oil	Daily	n/a	94	32.98	6,504 EUR	-4,694
DAX 40	30 min	n/a	1,438	32.82	5,562 EUR	-3,096
Nasdaq 100	4 hours	n/a	269	37.92	5,134 EUR	-4,061
Brent Crude	1 hour	n/a	464	36.21	5,052 EUR	-4,270
Nasdaq 100	5 min	n/a	1,467	32.99	4,368 EUR	-2,753
DAX 40	15 min	n/a	1,502	32.62	3,938 EUR	-3,194
Gold	1 hour	n/a	844	37.91	2,698 EUR	-698
Gold	Daily	n/a	93	38.71	2,305 EUR	-929
S&P 500	Daily	n/a	120	40.00	2,209 EUR	-737
Gold	30 min	n/a	1,314	32.27	1,535 EUR	-573
Gold	15 min	n/a	1,378	31.35	1,430 EUR	-660
S&P 500	4 hours	n/a	265	42.26	1,429 EUR	-507
Gold	5 min	n/a	1,426	30.79	1,083 EUR	-388
S&P 500	30 min	n/a	1,339	34.80	1,048 EUR	-1,030
S&P 500	1 hour	n/a	937	35.54	941 EUR	-572
Gold	10 min	n/a	1,376	30.89	910 EUR	-523
Gold	3 min	n/a	1,359	29.80	660 EUR	-563
Gold	2 min	n/a	1,336	29.79	632 EUR	-447

Charts

Results by run

Top 10 of 37 runs. The full list is in the table above.

Above 1.0 made money, below 1.0 lost money.

The code

ProBuilder code, as tested

// ==============================================================
// Three Candle Moving Average Pattern
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long only
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

smaa = Average[20](close)
smab = Average[40](close)
smac = Average[80](close)
top = max(max(smaa, smab), smac)

above = 0

20 more lines: the entry and exit rules.

Setup

How to load it

Copy the code with the copy button on the code block.
In ProRealTime, open a chart of the instrument and timeframe you want to test, then open ProOrder > New trading system and choose "Create with programming".
Paste the code, give the system a name and save it.
Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

SMA

Longer historyRe-run on up to 1,000,000 barsGold · 4 hours · older data 0.00 EUR

Gold had no history beyond the standard run, so both runs used 30,000 bars.

Gold · 4 hours

Bars available	30,000
Net, standard 200,000-bar run	2,802.30 EUR
Net, long run	2,802.30 EUR
Net on the older data alone	0.00 EUR

Read this firstKnown weaknesses2 points

The code sets no stop loss, so a losing trade stays open until an exit signal arrives.
Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run Three Candle Moving Average Pattern in ProOrder?

Yes. The code is ProBuilder and runs as an automated ProOrder system. Backtest it on your own account with your own spread and position size before trading it live.

Which markets was it tested on?

It was tested on 37 market and timeframe combinations. The best run was Gold, 4 hours, with a profit factor of 2.09 over 225 trades.

How large was the drawdown?

The best run had a maximum drawdown of 646 EUR at the tested position size, against a net result of 2,802 EUR.

Does it trade long, short or both?

It only takes long trades.

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Past backtest results do not guarantee future results. This is not financial advice. Curated and maintained by ProRealAlgos. ProRealTime™ is a trademark of ProRealTime SAS. prorealalgos.com Stats Docs

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