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Open Price and Engulfing Bars 104 replies
"Bullish Engulfing Bar" and "Bearish Engulfing Bar" trade 88 replies
Looking for EA to trade bullish and bearish engulfing candles 21 replies
Trading using engulfing price action? 0 replies
Definition of Bullish Outside Engulfing and Bearish Outside Engulfing 3 replies
Disliked{quote} Hang on, in post#1 you are drawing your rectangle from the open and close.Now you are using the high and low???Ignored
DislikedThere's sometimes some confusion in threads of this nature, about exactly what "engulfing" means. The factors that contribute to that seem to include different people's understandings of "bars" and "candles", and exactly what "engulfs" what. For people looking at candles, strictly speaking the open and close can't both "engulf" those of the previous candle, because forex doesn't gap, and each candle opens at the same level at which its predecessor closed. Bars and candles obviously present exactly the same information, but with a very...Ignored
DislikedTo set the Rectangle, to properly cover the day in question, you must edit the time settings and check that the High and Low are also correct When you set the time properly, that is from 00:00 to 00:00, on the Day chart, the bars covered will show appropriately in the lower time frames Best and easy to see on these charts, same day as the example in post # 1 Regards, E. {image} {image}Ignored
Disliked{quote} There is always some confusion, especially as you say when the bar's open is the same as the previous bar's close.Maybe it would be best to describe it asA bullish bar following a bearish bar - close is higher than the previous bar's openorA bearish bar following a bullish bar - close is lower than the previous bar's open Of course, this may not strictly apply to a Monday bar, when there may be an opening gapIgnored
DislikedSeems pretty simple, thanks. I think the real thing going for it is the potential risk reward. As an engulfing usually means a strong move has just begun so you should be able to catch some good trends. I wouldn't take the 1:1 RR, I'd stretch it to 3:1 or more. Watch candle or price action, maybe go to an 8hr chart to look for an exit.Ignored
DislikedI think there will always be some debate as to what constitutes an engulfing candle. There is obviously a true definition but there are some who have different interpretations. For myself I like to see the whole of the candle, wicks and all engulfed. Some candles that people would call engulfing I would just class as significant, but that's just me.Ignored
DislikedYeah I am not too hung up on it either, it should be a strong move either way.. AngyG, have you backtested this? jtIgnored