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Open Price and Engulfing Bars

  • #41
  • Mar 26, 2019 12:32pm Mar 26, 2019 12:32pm
Quoting HappyMan
Hi TooSlow, Nice seeing you here. Below, the OP suggests buying at the open of the bar following the engulfing bar. {quote}
Hi,
Yes you are correct, buy at the open of the bar after the engulfing bar closes.
So in that pic, the pivot would have been on that last bearish bar open. Then wait for that next bullish bar too close and completes it's engulfing pattern.

Just be sure too zoom out of that chart, to look for any resistance levels nearby.
  • #42
  • Mar 26, 2019 12:34pm Mar 26, 2019 12:34pm
Quoting TooSlow
{quote} The indicator SwingMan wrote for HOLO could be modified to do this system.
Yea it's a great indicator, but my programming skills aren't that good. Definitely could be modified if someone would like to give it a go. thumbs up
  • #43
  • Mar 26, 2019 1:09pm Mar 26, 2019 1:09pm
Quoting trader1234
{quote} Hi, Yes you are correct, buy at the open of the bar after the engulfing bar closes. So in that pic, the pivot would have been on that last bearish bar open. Then wait for that next bullish bar too close and completes it's engulfing pattern. Just be sure too zoom out of that chart, to look for any resistance levels nearby.
Hi,

Curious how you define support and resistance levels? Usually, everyone has their own definition. Do you use some kind of indicator for that?

Thanks!
Buy low, sell high.
  • #44
  • Mar 26, 2019 8:03pm Mar 26, 2019 8:03pm
good day trader1234, for set up, did you wait until 3 bars make new high/low to make confirmation?
  • #45
  • Mar 26, 2019 9:16pm Mar 26, 2019 9:16pm
Quoting HappyMan
Hi TooSlow, Nice seeing you here. Below, the OP suggests buying at the open of the bar following the engulfing bar. {quote}
My misunderstanding:

Example of a sell setup, Bar1 opens above Open Price Pivot and closes below the pivot, and engulfs the previous candle. Also it doesn’t matter how many previous candles it engulfs as well.

Sell on the open of Bar2

Too use to trading HOLO. Thank you for helping me understand, Mate. Cheers!
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #46
  • Mar 26, 2019 11:58pm Mar 26, 2019 11:58pm
Quoting trader1234
{quote} 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.
How did you define trend and support or resistance since this is something that is subjective. Each person could have different criteria
  • #47
  • Mar 27, 2019 8:43am Mar 27, 2019 8:43am
Quoting TooSlow
{quote} My misunderstanding: Example of a sell setup, Bar1 opens above Open Price Pivot and closes below the pivot, and engulfs the previous candle. Also it doesn’t matter how many previous candles it engulfs as well. Sell on the open of Bar2 Too use to trading HOLO. Thank you for helping me understand, Mate. Cheers!
You're welcome! Glad it has contributed to a better understanding.

A trade example.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 273 KB
Buy low, sell high.
  • #48
  • Mar 27, 2019 8:59am Mar 27, 2019 8:59am
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}
Hi trader1234
please can you mark where should be the entry for this setup.
https://www.forexfactory.com/attachm...1&d=1553570583
  • #49
  • Mar 27, 2019 11:55am Mar 27, 2019 11:55am
Quoting ourfield
good day trader1234, for set up, did you wait until 3 bars make new high/low to make confirmation?
Do you mean when the pivot is moved? I take the immediate high or low as confirmation to move the pivot once that candle closes. So let's say Bar B makes either a higher high or lower low than Bar A, once Bar B closes I move the pivot to Bar B's Open price.

Hope that helps
  • #50
  • Mar 27, 2019 12:02pm Mar 27, 2019 12:02pm
Quoting HappyMan
{quote} Hi, Curious how you define support and resistance levels? Usually, everyone has their own definition. Do you use some kind of indicator for that? Thanks!

I don't use any indicators. Just basic trendlines, and support / resistance levels. I usually start on the weekly/daily chart, zoom out, plot in major support and resistance areas. Then down to 4hr/Daily to mark off any immediate trends.

I agree, everyone has their own way of defining their trends and support resistance levels. It is something that can be somewhat subjective. That's why I urge everyone to incorporate it into their own "style" of trading. So however you define your trends and levels, too then backtest and practice these setups.

I will post a chart sometime this week with examples of how I mark off the trends and levels.
  • #51
  • Mar 27, 2019 12:04pm Mar 27, 2019 12:04pm
Quoting inoycavalera
{quote} How did you define trend and support or resistance since this is something that is subjective. Each person could have different criteria
Some reply I had to HappyMan. I agree, very subjective. That's why I encourage everyone to test it with their own trading style. I'll post some examples soon. But that doesn't mean my levels are going to be correct to some peoples eyes. Everyone is different. What matters is what works for you and your current style of trading.
  • #52
  • Mar 27, 2019 12:06pm Mar 27, 2019 12:06pm
Quoting HappyMan
{quote} You're welcome! Glad it has contributed to a better understanding. A trade example. {image}

I took that setup as well. Great example by the way. Thumbs up!
  • #53
  • Mar 27, 2019 12:54pm Mar 27, 2019 12:54pm
Hello trader1234,

I like this idea, a quite simple approach

Quoting trader1234
Open Pivot Price Action System Intro: It’s pretty straight-forward system as I like to keep it simple. Use proper risk:reward / money management when trading and don’t over leverage yourself. I always look at the bigger picture from 4hr/Daily/Weekly/Monthly Charts before making any decisions to trade. I trade 28 Pairs, on the 4hr to Daily Charts. This is just my preference which suits my schedule.(But this system works on lower timeframes as well. Just adjust your takeprofit / stoploss accordingly) Trading market hours (24hrs). I don’t limit myself...
  • #54
  • Mar 27, 2019 9:04pm Mar 27, 2019 9:04pm
Quoting trader1234
{quote} I took that setup as well. Great example by the way. Thumbs up!
Wow that's sticking to the rules! Entered off an inside bar that engulfed the body of the previous bar by all of 2 pips. I cannot check the pips bit, because it didn't even happen with a broker using the New York close.

That said, great thread by the way.
Good Trading
  • #55
  • Mar 27, 2019 10:08pm Mar 27, 2019 10:08pm
Quoting johr
{quote} Hi trader1234 please can you mark where should be the entry for this setup. {image}
hi trader1234
please mark on chart
  • #56
  • Mar 27, 2019 10:13pm Mar 27, 2019 10:13pm
Quoting HappyMan
{quote} You're welcome! Glad it has contributed to a better understanding. A trade example. {image}
My chart looks different no engulfing pattern like yours, i checked other broker also different. What your broker?
Attached Image (click to enlarge)
Click to Enlarge Name: EURJPYH4.png Size: 31 KB
  • #57
  • Mar 27, 2019 10:25pm Mar 27, 2019 10:25pm
Quoting inoycavalera
{quote} My chart looks different no engulfing pattern like yours, i checked other broker also different. What your broker? {image}
IG
Buy low, sell high.
  • #58
  • Mar 27, 2019 10:33pm Mar 27, 2019 10:33pm
Quoting johr
{quote} hi trader1234 please mark on chart
Attached Image
  • #59
  • Mar 27, 2019 10:45pm Mar 27, 2019 10:45pm
Quoting johr
{quote} hi trader1234 please mark on chart

Attached Image



Looking at the Candles I marked off in blue.
Candle B & C don't make higher high or lower low than Candle A, so pivot stays on Candle A.
Candle C engulfs Candle B for a Bearish engulfing pattern. It only needs to engulf the previous candle. Entry sell is the Candle after Candle C. This is the example I mentioned earlier about engulfing patterns forming away from the pivot. So doesn't necessarily always have to cross the pivot for setups. Since our engulfing pattern happens below our pivot and is a bearish pattern, then that qualifies as a good setup.
Take Profit = Candle C
Stop Loss = Candle C

Hope that helps
  • #60
  • Mar 27, 2019 10:45pm Mar 27, 2019 10:45pm
Is this correct setup? i took the images from netdania since my broker USDCAD chart is not showing engulfing pattern.
Thanks
Attached Image (click to enlarge)
Click to Enlarge Name: Capture.JPG Size: 100 KB
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