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Engulfing bars

  • #41
  • Apr 25, 2011 9:37pm Apr 25, 2011 9:37pm
I know this is breaking the 50 sma rule, but like i said, sometimes i will take a countertrend trade.... but i will be more cautious with my stops..

http://i1222.photobucket.com/albums/.../guengulf2.png
  • #42
  • Edited Apr 26, 2011 4:12am Apr 25, 2011 9:42pm | Edited Apr 26, 2011 4:12am
possible EJ short, below the 50sma and broke support

Never triggered on next bar cancelled the order.......

http://i1222.photobucket.com/albums/...26at034107.png
  • #43
  • Apr 25, 2011 10:10pm Apr 25, 2011 10:10pm
In the chart below is EUR/GBP daily. The green dashed line is the 50sma. The green circle is the engulfing bar.

Since the price is above the 50sma I'll take only long positions.

I have entered a buy stop order at 0.8857 (5 pips higher than the engulfing bar's high).
SL at 0.8791 (5 pips lower than the engulfing bar's low).
TP at 0.8923 (the same pips as the SL).

Let's see how it'll go.

If the buy stop is not hit by tomorrow morning (I am in CST zone) I will cancel the buy stop as it will be well into the London session by then. That would mean that there is no momentum.
Attached Image (click to enlarge)
Click to Enlarge Name: eurgbp.gif Size: 12 KB
  • #44
  • Apr 26, 2011 4:13am Apr 26, 2011 4:13am
Quoting darrenlittle
ECHF trade update, took half profits at +44 shotting for next support with the rest, not bad on a day like today

http://i1222.photobucket.com/albums/...25at164628.png
Got tp2 73 pips.... closed

http://i1222.photobucket.com/albums/...echfengulf.png
  • #45
  • Apr 26, 2011 6:31am Apr 26, 2011 6:31am
Quoting HiddenGap
This is one of my favorite Japanese Candlestick patterns.

What we have here is really 2 patterns in 1. This is both a valid bullish engulfing doji pattern and a vallid high close doji pattern.

Many Price Action only traders will have both a pattern signal and an entry signal. They will wait for the price to trade back down below the high of the engulfing candle (into its body) to enter long, rather than chase price. Therefore it is possible to get a valid pattern signal and not a valid entry signal.

Hello HiddenGap

I truly like your trading approach. Could you provide a link or info on how you calculate your PT points.

I'm a believer that the closing of a trade is more important than the entry. Money is gain or loss is always based on the exit.

When your PT is reach, do you scale down your position or you are using the target as a reason to raise ( lower) your stop.

Are these target pre-defined before entering a position or you defined them as the trend is unfolding.

Martin
  • #46
  • Apr 26, 2011 4:18pm Apr 26, 2011 4:18pm
We've all heard it before, you need to look left to trade right.

First chart:

This is an interesting late day trade set up in the ES. We can see that there is a bearish engulfing candle line. However, this is not a valid bearish engulfing pattern from my perspective. But, there is a second type of signal happening there as well. So the sum of those two things occurring at the same time increases the probability of the trade.

What's more important, arguably, is where this is happening. Another way to put that is, what is the context of the prior price action in which this signal is now appearing?

Well, let's look left.......

Second Chart:

We see a valid bearish engulfing doji pattern. The long shadow of the Doji line is our key change in the Supply/Demand Dynamic in the market. Unfortunately, I can not take this trade because it does not occur with an Supply Demand Delta Zone. But..........

It creates a zone and thereby gives us an understanding of the price action prior to the trade signal that arises later. By looking left, we are now able to trade right.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Price Action 3.png Size: 111 KB
Click to Enlarge Name: Price Action 4.png Size: 83 KB
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #47
  • Apr 26, 2011 4:45pm Apr 26, 2011 4:45pm
nice post hidden gap not just what, but where too....
  • #48
  • Apr 26, 2011 7:13pm Apr 26, 2011 7:13pm
darrenlittle,


I watched the webinar by Steve Primo and found it very informative and gave very good instructions on using this method. I do have a question for you that I didnt hear Steve Primo answer during the webinar . Lets say that price is above 50SMA so we are only looking to buy. We get a Bullish engulfing bar ( signal bar ) but say the next 2 -3 days our entry isnt triggered because price didnt break the high of the engulfing bar by 2-5 pips , how long do you keep your order open to buy before you close it and wait for the next signal ? Also , if we have the same set-up as I just mentioned and the next bar gaps up , do you enter at the market or cancel your order and wait for the next signal ?

Thank you ,

EZTrades
" Master Your Set-Up , Master Yourself "
  • #49
  • Apr 26, 2011 7:26pm Apr 26, 2011 7:26pm
I closed it at 0.8910 for +53 pips.



Quoting FusionF
In the chart below is EUR/GBP daily. The green dashed line is the 50sma. The green circle is the engulfing bar.

Since the price is above the 50sma I'll take only long positions.

I have entered a buy stop order at 0.8857 (5 pips higher than the engulfing bar's high).
SL at 0.8791 (5 pips lower than the engulfing bar's low).
TP at 0.8923 (the same pips as the SL).

Let's see how it'll go.

If the buy stop is not hit by tomorrow morning (I am in CST zone) I will cancel the buy stop as it will be well into the London session by then. That would...
  • #50
  • Apr 26, 2011 7:38pm Apr 26, 2011 7:38pm
Quoting EZTrades
darrenlittle,


I watched the webinar by Steve Primo and found it very informative and gave very good instructions on using this method. I do have a question for you that I didnt hear Steve Primo answer during the webinar . Lets say that price is above 50SMA so we are only looking to buy. We get a Bullish engulfing bar ( signal bar ) but say the next 2 -3 days our entry isnt triggered because price didnt break the high of the engulfing bar by 2-5 pips , how long do you keep your order open to buy before you close it and wait for the next signal...
Hi EZTrades,

I think he says somewhere in the video that if the trade isn't triggered until the end of the day/candle then cancel the order but don't quote me on that. Maybe darrenlittle knows. But at least that's what I do as it would mean that there is no momentum.

By entering with a market order when you have a gap that would increase the risk and it would probably be because of some important news. I guess it depends on your risk tolerance and money management. Personally, I wouldn't take the trade. I don't like chasing trades I prefer them chasing me
  • #51
  • Apr 26, 2011 7:50pm Apr 26, 2011 7:50pm
Fusion F ,

Thanks for your reply . Thats sounds logical to me . Congratulations on your 53 pip winner today ! Nice trade !




Thanks again ,

EZTrades
" Master Your Set-Up , Master Yourself "
  • #52
  • Apr 26, 2011 8:28pm Apr 26, 2011 8:28pm
Here's a trade I just entered.
AUD/CAD
Buy stop: 1.0280
SL: 1.0186
TP: 1.0374

Also keep in mind that the Australian CPI is coming out. If the news are good it'll explode...
Attached Image (click to enlarge)
Click to Enlarge Name: audcad042611.gif Size: 10 KB
  • #53
  • Apr 26, 2011 9:08pm Apr 26, 2011 9:08pm
Quoting EZTrades
darrenlittle,


I watched the webinar by Steve Primo and found it very informative and gave very good instructions on using this method. I do have a question for you that I didnt hear Steve Primo answer during the webinar . Lets say that price is above 50SMA so we are only looking to buy. We get a Bullish engulfing bar ( signal bar ) but say the next 2 -3 days our entry isnt triggered because price didnt break the high of the engulfing bar by 2-5 pips , how long do you keep your order open to buy before you close it and wait for the next signal...
if it doesnt trigger next bar you cancel the order, the idea is to get in on a sustained momentum move.

You should trade these with buy stops and sell stops so (depending on your broker) you should be entered at the price you set.
  • #54
  • Apr 26, 2011 9:20pm Apr 26, 2011 9:20pm
anyone for real easy pips?

http://i1222.photobucket.com/albums/...s/auengulf.png
  • #55
  • Apr 26, 2011 11:12pm Apr 26, 2011 11:12pm
Quoting darrenlittle
anyone for real easy pips?

http://i1222.photobucket.com/albums/...s/auengulf.png
Hi mate, is this a daily chart?

Edit: sorry looks more like a H4, is that correct?
  • #56
  • Apr 26, 2011 11:56pm Apr 26, 2011 11:56pm
I have a indicator for engulf candle

But not giving out correct signals well

MQL coder PM me if can help out
  • #57
  • Apr 27, 2011 4:09am Apr 27, 2011 4:09am
Quoting pierre23
Hi mate, is this a daily chart?

Edit: sorry looks more like a H4, is that correct?
yes 4hr
  • #58
  • Apr 27, 2011 8:19am Apr 27, 2011 8:19am
GCHF 4HR..

this was countertrend and only a tiny engulfing candle, but location and the pin bar was the real trigger... also GBP news was good... high probability trade

http://i1222.photobucket.com/albums/...27at141716.png
  • #59
  • Apr 27, 2011 8:27am Apr 27, 2011 8:27am
Quoting darrenlittle
GCHF 4HR..

this was countertrend and only a tiny engulfing candle, but location and the pin bar was the real trigger... also GBP news was good... high probability trade
Hi Darren:

There are two things that would have kept me out of this trade: 1) It's countertrend. Maybe, when I get good at the original method, I will begin to explore CT trading. 2) You were trading right into the 1.45 BRN. Did you enter after it crossed 1. 45? I can't read the numbers on your chart.

If not, it looks risky to me. Glad it worked out for you.

Location
  • #60
  • Apr 27, 2011 8:32am Apr 27, 2011 8:32am
Quoting Dreamliner
And HUGE costs to be trained--sheesh, nearly 8,000.00 for Forex training.
There are suckers born every minute that would throw their money at that bogus training.
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