"Bullish Engulfing Bar" and "Bearish Engulfing Bar" trade

OMG LOOK at those beautiful bearish engulfing candles on the 4-hour on Cable! PLUS, they seem to form a double top!! OMGGG this is surely a strong bearish sign!

So juicy, right?

Right??


But wait...

Hi Yuya,

Appreciate if your can share the Moving Average you are using. I can see you took the trade when the Moving Average are fan out as a confirmation. I am also trying to learn to trade with Price action.

Hopefully you can share the indicator you are using too .

Thank you.

came across this thread as I was looking for the original 4 hour engulfing bar thread I read 2 years ago. it had a risk to reward of 1:1 and win rate of about 60%. this gbpusd set up worked out in the end. my question is why would the bulls buy at the high. they would buy at recent s/r levels of 1.25 and it was a good trending period at that point of time.

Hey thanks for your post! I only saw this now, as I went down with this blasted covid and then moved to another part of the world, lol!

I may have been trading the markets' casino for some 20 years now, but that doesn't mean I know why the price does what it tends to do. For example, what makes us think that it is bulls who push the price up, by buying, even at a high? Forced buying by shortsellers who decide to bail out of shorts by buying as the price approaches the highs that are threatened, might add fuel to the move.

There is also manipulation by big market makers. I used to work in the biggest investment bank in the world. I know it happens. It's even been in the public news multiple times

Want to see a very recent beautiful weekly bearish engulfing bar that will also most likely be reversed and have its high taken out? Check out the weekly 10year US treasury note! This is a pretty zoomed-out weekly candle chart of it, but zoom in and look at last week's weekly bar. It looks like the perfect weekly bearish engulfer! Moreover, it seems to have broken below the multi-week channel and even CLOSED below it! And, it seems like there is follow up this week? Perfect short signal, right?



Well, I've taken the other side of anyone who shorted. I don't even have to risk much. Let's see what happens, as Trump likes to say!

Hi

Its still a 50/50 shot, if one run it through excel. Any thoughts how to filter it using excel?

Kind regards
Kel

Hi, Kelowkie,
I am happy to see you are doing back testing. I am developing EA for back testing Engulfing candle. Will you share your result with me. thanks

The original poster was simply drumming up business for his "books." Seems he disappeared in 2020. Not good omens for his strategy right

Here is a case where traders get long on the Pin Bar for a day, then get trampled by the Bearish Engulfing, especially with the next day continuation

Where to now?