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Open Price and Engulfing Bars

  • #21
  • Mar 24, 2019 5:18pm Mar 24, 2019 5:18pm
Trader 1234, you claim that you mainly trade the 4 hour and daily timeframes. From your experience, which of these timeframes would you say is more profitable.
  • #22
  • Edited 6:40pm Mar 24, 2019 6:14pm | Edited 6:40pm
Does anyone have an indicator which shows this specific setup? If not, if someone can code mql4, would you like to code this indicator please?
Nothing in life is to be feared, it is only to be understood.
  • #23
  • Mar 25, 2019 3:39am Mar 25, 2019 3:39am
Hi Trader1234,

your strategy seems to be really straightforward, but still i do have issues to apply the logic correctly. Could you please shed some light on the setup below ?

  1. Candle marked as A does make low but it's a bulish candle - should the pivot still go to the open of this candle?
  2. Candle marked as B makes both higher high and lower low - what to do with this candle ? Wait for new candle to form either low or high ?


Thanks

Attached Image
  • #24
  • Mar 25, 2019 6:48am Mar 25, 2019 6:48am
Quoting ola08
Trader 1234, you claim that you mainly trade the 4 hour and daily timeframes. From your experience, which of these timeframes would you say is more profitable.
I usually do a scan of the daily charts first. If I see a setup forming then I mark the pairs with the best potential for potential trades. I then move to the 4hr charts and scan for setups.

If a setup on the 4hr charts lines up with the Daily Charts, then I use that as extra confirmation indicators for confluence.

I wouldn't want to say one specific time-frame is more profitable than the other. Because it all comes down to money management and adjusting your lot sizes based on your risk:reward. But what works best for myself and my style of trading is the 4hr/Daily combined together. Just find what time-frame suits your style of trading.

Keeping that in mind, usually when I spot a setup on the Daily Chart forming, then chances are the 4hr chart for the same pair will have a setup forming as well.

The same can be said when trading the 1hr chart, spot the setup, then getting a better entry on the 15min/5min chart, etc..


Hope that helps!
  • #25
  • Mar 25, 2019 6:53am Mar 25, 2019 6:53am
Quoting D3trax
Hi Trader1234, your strategy seems to be really straightforward, but still i do have issues to apply the logic correctly. Could you please shed some light on the setup below ? Candle marked as A does make low but it's a bulish candle - should the pivot still go to the open of this candle? Candle marked as B makes both higher high and lower low - what to do with this candle ? Wait for new candle to form either low or high ? Thanks {image}
It doesn't matter if it's a higher high or lower low. But it has to be either or both (is fine too).

So in this case, I would move Pivot to open of Candle A.
The close of Candle B would have satisfied a sell entry on the next Candle.

Candle B made both a higher high and lower low. So it satisfies one of our conditions (which is higher high or lower low). So Pivot would move to open of Candle B.
  • #26
  • Mar 25, 2019 7:17am Mar 25, 2019 7:17am
Thank you.
  • #27
  • Mar 25, 2019 3:28pm Mar 25, 2019 3:28pm
What is point of pivot? Price after engulfing candle automaticly be lower or higher of previous pivot. Or I am wrong?
  • #28
  • Mar 25, 2019 8:23pm Mar 25, 2019 8:23pm
Which Pivot is right?
Candle A Open which is pivot of the Bullish candle or candle B Open which s Pivot of highest candle (but it is bearish candle).
Attached Image
  • #29
  • Mar 26, 2019 12:15am Mar 26, 2019 12:15am
Quoting ficibald
What is point of pivot? Price after engulfing candle automaticly be lower or higher of previous pivot. Or I am wrong?
Not all the time, there are times when there will be an engulfing pattern away from the pivot. In that case, if it's a bearish engulfing that happens away and below the pivot, then i would look at entry to sell. vice versa for buy.

But if it's an bullish engulfing pattern below the pivot then I wouldn't take that buy entry.
  • #30
  • Mar 26, 2019 12:18am Mar 26, 2019 12:18am
Quoting johr
Which Pivot is right? Candle A Open which is pivot of the Bullish candle or candle B Open which s Pivot of highest candle (but it is bearish candle). {image}
They are both correct. Candle B made a new high, regardless if it's a bearish candle, the pivot will move to Candle B open once Candle B's candle closes.
  • #31
  • Edited 3:46am Mar 26, 2019 2:24am | Edited 3:46am
Quoting trader1234
{quote} They are both correct. Candle B made a new high, regardless if it's a bearish candle, the pivot will move to Candle B open once Candle B's candle closes.
Trader1234, what will then be the entry point in this case? Is it the next bearish candle the closed below candle B? (Per the chart in #post 28 above)
  • #32
  • Edited 4:29am Mar 26, 2019 4:12am | Edited 4:29am
Where is the mistake? is it just because not riding the trend? as what i understand, the engulfed candle is candle which make higher high or lower low. Please correct me...

Thanks
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  • #33
  • Edited 5:46am Mar 26, 2019 5:10am | Edited 5:46am
Attached Image (click to enlarge)
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This is very similar to the Highest Open/Lowest Open system that I trade.

Green pips to you!
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #34
  • Mar 26, 2019 5:53am Mar 26, 2019 5:53am
Quoting matthew89
Does anyone have an indicator which shows this specific setup? If not, if someone can code mql4, would you like to code this indicator please?
The indicator SwingMan wrote for HOLO could be modified to do this system.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #35
  • Mar 26, 2019 6:09am Mar 26, 2019 6:09am
Hi,

Let's see if this qualifies - gold, H4.
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Buy low, sell high.
  • #36
  • Mar 26, 2019 6:56am Mar 26, 2019 6:56am
TooSlow
hi thanks for your strategy. after some losses i am trying to study your system (
Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade) . beacause of my poor english i don't understand it very well. do you have a pdf file wicht explain the entry ans exit with image plz! And what is the name of the indicator for change the paire symbol on your chart. Thank you so much

  • #37
  • Mar 26, 2019 7:04am Mar 26, 2019 7:04am
Quoting HappyMan
Hi, Let's see if this qualifies - gold, H4. {image}
The buy should be at the open of the last bear bar according to the rules unless I misunderstand.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #38
  • Mar 26, 2019 7:16am Mar 26, 2019 7:16am
Hi TooSlow,

Nice seeing you here.

Below, the OP suggests buying at the open of the bar following the engulfing bar.

Quoting trader1234
Another Buy example on the Daily Chart {image}
Buy low, sell high.
  • #39
  • Mar 26, 2019 10:23am Mar 26, 2019 10:23am
Quoting inoycavalera
Where is the mistake? is it just because not riding the trend? as what i understand, the engulfed candle is candle which make higher high or lower low. Please correct me... Thanks {image}
Appears that it is against the overall trend. I don't take every setup, only ones that are with the overall trend and being aware of suppot/resistance levels.
  • #40
  • Mar 26, 2019 10:26am Mar 26, 2019 10:26am
Quoting TooSlow
{image} This is very similar to the Highest Open/Lowest Open system that I trade. Green pips to you!
Yes very similar. Great thread by the way.
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