{quote} hello sciurus...if i understand the methodology correctly(and i may not)...it appears your first 3 entries have engulfing candles that are too large...they should only engulf candle number 2...not both...and your 3rd and 4th entries are occurring in a downtrend so you should be looking for a sell rather than a buy...hope this helps
Have a look at post #747. Clearly, that was a sell within a proximate uptrend. I too am not very clear on the exact three bar criteria, and I think there are probably enough people that are confused about it that I am amazed at how many people are blindly trading this after reading first encountering it 5 days ago.
, thank you for your submissions and keep trying... keep at it! WOW, I'm running out of hours in the day to get to everyone's post. I'm on page 15 of 25. Unfortunately I need to get myself some much needed rest.
Hi, I've just found this thread and find it very interesting indeed! As I read this thread I absorb the method a bit more with each new example and questions asked and answered. One point that is causing me some confusion, however, is that you explain that we should be trading in the direction of the trend but so many of the examples are actually reversals. I have read your explanations on page 1 over a few times and checked the examples there and find it to be a truly eye opening method.....but reversal, not WITH the previously established trend. Am I not understanding something? Your help is greatly appreciated!