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Attachments: MTF Engulf / Engulf fail
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MTF Engulf / Engulf fail

  • Post #1
  • Quote
  • First Post: Edited Dec 1, 2023 10:52am Sep 21, 2023 7:39am | Edited Dec 1, 2023 10:52am
Do the following for best results, and focus on the simplicity of mtf engulfing with breakout. nothing else required.

Only 3 things need to be in order before placing any trade.

  1. Time of Day : Choose a high volume time to trade – London, New York session, NYSE open.
  2. HTF Engulf Zone : During that session, find one HTF Engulf Zone that is in the vicinity of the current market price.
  3. LTF Engulf Zone : Find one LTF Engulf Zone that is within or around HTF Engulf Zone and monitor the price action for Trade Entry. Observe whether price is rejecting or breaking out of the LTF Engulf Zone, aligning in the same direction as HTF Engulf Direction.

Entry: Horizontally from HTF Engulf to same type LTF Engulf (bullish to bullish, bearish to bearish)
Take Profit: Vertically from Engulf to opposite Engulf (bullish to bearish, bearish to bullish)

https://www.forexfactory.com/thread/...6#post14621296
https://www.forexfactory.com/thread/...4#post14633084
https://www.forexfactory.com/thread/...5#post14659695
videos:
https://www.forexfactory.com/thread/...7#post14593437
https://www.forexfactory.com/thread/...1#post14623881
https://www.forexfactory.com/thread/...5#post14633045
Most confident trades
https://www.forexfactory.com/thread/...6#post14635326
https://www.forexfactory.com/thread/...7#post14635347
Do not blame the methods, instead you should ask how "zoned in" are my eyes?
https://www.forexfactory.com/thread/...1#post14635371

Rules

(1) Direction flow bias.
Go to w1, d1, h4 to find Engulfing direction.

the concept https://www.forexfactory.com/thread/...9#post14608979
https://www.forexfactory.com/thread/...3#post14610713
Direction bias
https://www.forexfactory.com/thread/...7#post14594927
https://www.forexfactory.com/thread/...0#post14606270
https://www.forexfactory.com/thread/...3#post14606923
Speaking the language of Engulfing. https://www.forexfactory.com/thread/...7#post14608247
How to blow you account. https://www.forexfactory.com/thread/...8#post14607628

(2) Entry.
When price retraces to the htf h4 Engulf zone
Drop down to h1 or m30 or m15 and find Engulf or Engulf Fail set up.
Entry upon retest of Engulf or Engulf Fail zone.
Zone as SL (40 pips maximum).
TP at opposite Engulf or support / resistant.

ltf entry. https://www.forexfactory.com/thread/...5#post14641675.

(3) Normally point 2 above for entry will suffice.
However If further precision entry or smaller SL needed. ......
When price retraces to the h1 or m30 or m15 Engulf or Engulf Fail zone
Drop down to m5 or m1 and find Engulf or Engulf Fail set up.
It is advisable not to use these time frames if you are a lesser experienced trader.
When there is Engulf Fail it is better to be followed up with an Engulf set up.
Entry upon retest of Engulf or Engulf Fail zone.
Zone as SL (40 pips maximum).
TP at opposite Engulf or support / resistant.

Implication of engulf fail. https://www.forexfactory.com/thread/...3#post14590243
Engulf fail followed by an engulf entry provide a lower risk trade. https://www.forexfactory.com/thread/...1#post14591101
Live trade example go through post 137, 139, 142, 143, 144.
M1 scalping https://www.forexfactory.com/thread/...1#post14598231
Even in m1 one can see how price dances using engulfing. https://www.forexfactory.com/thread/...0#post14593110

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ITB - Seeing Orderliness amongst 'Randomness'
spotted m30 bearish engulf set up.
h4 bearish engulf support the flow direction.
m30 entry on retest of bearish engulf.
tp at bullish engulf.
some more examples to come.
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ITB - Seeing Orderliness amongst 'Randomness'
spotted h4 bullish engulf fail set up.
d1 bearish engulf support the flow direction.
m30 entry on retest of bearish engulf.
tp at bullish engulf.
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ITB - Seeing Orderliness amongst 'Randomness'
spotted h4 bearish engulf set up.
d1 bearish engulf support the flow direction.

it was 30 min after the fomc statement fed rate announcement.
m30 entry on retest of bearish engulf.
tp at bullish engulf.
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ITB - Seeing Orderliness amongst 'Randomness'
gold touching the d1 bullish engulf.
there are also h4 bullish engulf, one within, one below.
i think price wants to go further down.
probably nyse open can provide some clue.
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ITB - Seeing Orderliness amongst 'Randomness'
Hi Inthebox,

I love this Method of Trading.
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Quoting stevepatt
Hi Inthebox, I love this Method of Trading. {image} {image} {image} {image}
ya me too.
it is quite mechanical.
makes you wait for the entry with the sl.
like one shot one kill.
like a crocodile waiting by the river bank for prey.

maybe when traders are more familiar, can post the set up when its near or approaching the engulf zone.
then we can all have some discussion on that.
ITB - Seeing Orderliness amongst 'Randomness'
Quoting Inthebox
spotted h4 bearish engulf set up. d1 bearish engulf support the flow direction. it was 30 min after the fomc statement fed rate announcement. m30 entry on retest of bearish engulf. tp at bullish engulf. {image}
Greetings Inthebox, thank you for setting up this thread. I am interested in this HTF approach
I have viewed Engulfing from 'the old school' , I guess,
where a single candle encompasses an entire (shadows included) previous candle or candles.
The examples posted earlier are different from my experience.
Would you post some examples of Engulfing as you define them and apply them in your trading with the Rules posted .

Thank you kindly,
Quoting Inthebox
{quote} ya me too. it is quite mechanical. makes you wait for the entry with the sl. like one shot one kill. like a crocodile waiting by the river bank for prey. maybe when traders are more familiar, can post the set up when its near or approaching the engulf zone. then we can all have some discussion on that.

Hi Inthebox,

I must admit I only Trade GBP/USD and I use M15 for my Levels of Interet and M1 Price Action to Enter

I will start to look at HTF Confluence

Is it ok, for me, to Post Lower Time Frame Setups?

I don't want to start on the wrong foot
  • Post #10
  • Quote
  • Edited 12:07pm Sep 21, 2023 11:55am | Edited 12:07pm
GBP/USD H4 M30 Observations
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Quoting Lou
{quote} Greetings Inthebox, thank you for setting up this thread. I am interested in this HTF approach I have viewed Engulfing from 'the old school' , I guess, where a single candle encompasses an entire (shadows included) previous candle or candles. The examples posted earlier are different from my experience. Would you post some examples of Engulfing as you define them and apply them in your trading with the Rules posted . Thank you kindly,
yes there are different views of what engulfing is.
to me, we look at the body first, then the shadow.
the body has to engulf previous body.
if bearish the bottom shadow has to engulf the previous shadow, the top shadow need not.
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ITB - Seeing Orderliness amongst 'Randomness'
Quoting stevepatt
{quote} Hi Inthebox, I must admit I only Trade GBP/USD and I use M15 for my Levels of Interet and M1 Price Action to Enter I will start to look at HTF Confluence Is it ok, for me, to Post Lower Time Frame Setups? I don't want to start on the wrong foot
as you are an experienced trader, you can use any time frame for set up.
however there has to be a higher time frame engulf to support the direction flow of the lower time frame set up.
ITB - Seeing Orderliness amongst 'Randomness'
Quoting Inthebox
{quote} yes there are different views of what engulfing is. to me, we look at the body first, then the shadow. the body has to engulf previous body. if bearish the bottom shadow has to engulf the previous shadow, the top shadow need not. {image}
Nice.. I like the added 'rule' where the shadow must engulf the previous shadow .. in the intended direction.
  • Post #14
  • Quote
  • Edited 5:59pm Sep 21, 2023 3:18pm | Edited 5:59pm
Hi, I looked at this some years ago (example no.2 in Inthebox's post no.11) to see if a potential/theoretical edge exists and at least on one pairing (gbpusd) over a very large historical sample on each t/f from 5min - daily there probably was one, but the ratio was something like 55% win: 45% lose...making a circa 2:1 reward:risk tactic essential for profitability across any given sample size of 20+ instances. Of course, this assumes you can get the psychology right as well, but using such a tactic it should just be a set-and-forget play? I made no allowances for movement of stop whilst a 2:1 successful trade was playing out. This could be looked at to try at least to minimize the losses? It may be different on other pairings/instruments of course, and indeed the pattern may have changed re the repeating market behaviour that gives rise to it, in the intervening years since my large-sample test. These factors may turn out to be positive or negative as regards whether an edge still exists on gbpusd, and/or other pairings/instruments, and t/f's.Remember with that 55% win rate your most typical consecutive max losing run of trades will be 6, and although lower in probability - up to 11, so your risk management should amply allow for this. An Ea would be easy to make too I guess.

Good Luck with it.
Intraday swing trader @ 1Hr+ supp/res, & 5min+ sbr/rbs, via 1min+ set-ups
Quoting Inthebox
gold touching the d1 bullish engulf. there are also h4 bullish engulf, one within, one below. i think price wants to go further down. probably nyse open can provide some clue. {image}
h1 bullish engulf set up.
d1 bullish engulf support the direction flow.
m30 entry on retest of bullish engulf.
tp at bearish engulf.
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ITB - Seeing Orderliness amongst 'Randomness'
i would like to mention here that at new york 10am there was a large candle closing above the bullish engulf.
i guess many traders like me would be wondering to buy or not.
will price shoot up to the top of resistant?
or will price retrace?
it's up to individual decision.
i bought and put tp at the top of m30 bearish engulf.
price went up 29 pips but got rejected at the base of bearish engulf.
shifted my SL to protect trade.
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ITB - Seeing Orderliness amongst 'Randomness'
Quoting Headland
Hi, I looked at this some years ago (example no.2 in Inthebox's post no.11) to see if a potential/theoretical edge exists and at least on one pairing (gbpusd) over a very large historical sample on each t/f from 5min - daily
maybe you can do another exercise using 2 times frames as in post 1, instead of 1 time frame.
the analogy is like catching the 2nd wind of a higher time frame.
probably m30 engulf entry after a retracement to the h4 engulf zone.
ITB - Seeing Orderliness amongst 'Randomness'
i find it rather odd that these 2 pairs can travel in the same direction.
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ITB - Seeing Orderliness amongst 'Randomness'
maybe something will happen.
but it's a big range.
note that there is a gbp pmi announcement.
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ITB - Seeing Orderliness amongst 'Randomness'
Quoting Inthebox
{quote} as you are an experienced trader, you can use any time frame for set up. however there has to be a higher time frame engulf to support the direction flow of the lower time frame set up.
Please correct me, if I got it wrong.

1. We are using engulfs across 3 TFs.
2. The Higher TF engulf is for the Directional flow.
3. The Mid TF engulf is for the Setup.
4. The Lower TF engulf is for the Entry.
5. TP will be the most recent opposite engulf in the SETUP TF (MID TF).

Also, what are the criteria to choose the TFs?

Success = Practice + Patience + Persistence
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