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"Bullish Engulfing Bar" and "Bearish Engulfing Bar" trade 88 replies

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Attachments: Engulfing bars
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Engulfing bars

Quoting darrenlittle
cool fusion, thats a tasty win, also noticed from your chart that the engulfing broke the support that was holding price up for over a week...
Exactly. That's why I liked that trade. The entry was a few pips lower than this support. So, if it was broken it would have to go down (most probably).

Also, my TP was a few pips higher than the next minor support level on the left of the chart. And as you can see, it reversed at that point.
Quoting darrenlittle
heres what i saw on 5m
http://i1222.photobucket.com/albums/...30at155422.png
Thanks for sharing your third strategy. Are there any filters that you use for flying buddhas? How do you minimize your bad trades? Do you only trade them short as graeme does?

Within the range I noticed two engulfing bars, did you enter short on either one of those? Do you wait for price to break the low of flying buddah before looking for entries?

Approximately, how many flying buddahs do you notice on the H4 and Daily charts per week?
the only filter i use is the higher tf, what you get with a daily or 4hr tf is the possibility of a major reversal,

so if we find an FB on the daily tf we know we could be at the start of a 100 - 1000 pip move, that signal short is valid until price closes above its high (going short obviously) if we can then find an entry in that direction on the 5m chart with less than 20 pip sl we are setting ourselves up for some major r/r...

There are lots of these every week, but the shorter the tf you look on the less the potential reward...

You could just trade the FB on its tf, stop above the high of the FB and short at the break of the low but if you can master looking for price action entries on a lower tf you can massively increase you risk to reward..
were getting off topic now and really should continue this in a seperate thread (but i cant start one)

i didnt trade this but it was a valid trade on ECHF

daily thursday gave a valid FB, the 4hr comfirmed with an FB too, then on the 1hr you can see that price was stacking up on the support, enter short at the break with momentum

http://i1222.photobucket.com/albums/...30at174119.png
Darren:

Thanks for the lessons on FBs. I know that we've moved from the thread topic, but this has been a great reminder.

To be honest, it has only been in the last month or two that I have considered higher tf analysis, and lower tf entries. And, I had not gone back to think about how FBs could be used in this regard.

Thanks for sharing.
Darrenlittle,
I noticed that you mentioned, or explained, Steve Primo engulfing candle. Do you like his methods?
It seems like engulfing candles on the forex charts wouldn't be too reliable (except weekly T/F) since the close of one candle is always the open of the next candle (or pretty close). So you are pretty much just looking at one end, the close of the current candle, for a signal. Given that premise, do you find them reliable anyway?
Bob
Quoting darrenlittle
were getting off topic now and really should continue this in a seperate thread (but i cant start one)

i didnt trade this but it was a valid trade on ECHF

daily thursday gave a valid FB, the 4hr comfirmed with an FB too, then on the 1hr you can see that price was stacking up on the support, enter short at the break with momentum

http://i1222.photobucket.com/albums/...30at174119.png
Darren, thanks for the good ideas - what fascinates me especially is everything related to watching 4h and daily for setups, then switching to lower TF such as 15min or 5min for better R:R.

On your black/white charts : is your red line the 50sma, what are the other 2 MA`s ? I like it very much.

Thanks. I have little time but hope to contribute if I see something tradeable.



______________
michael
Be like water.
Quoting bopeltzman
Darrenlittle,
I noticed that you mentioned, or explained, Steve Primo engulfing candle. Do you like his methods?
It seems like engulfing candles on the forex charts wouldn't be too reliable (except weekly T/F) since the close of one candle is always the open of the next candle (or pretty close). So you are pretty much just looking at one end, the close of the current candle, for a signal. Given that premise, do you find them reliable anyway?
Bob
The key to Steve Primo's idea is the use of the 50 sma to force you to only trade with the trend, for the body to engulf it requires that the previous candle was countertrend then you have momentum back into the trend direction... its a simple idea but effective
Quoting msmarple
Darren, thanks for the good ideas - what fascinates me especially is everything related to watching 4h and daily for setups, then switching to lower TF such as 15min or 5min for better R:R.

On your black/white charts : is your red line the 50sma, what are the other 2 MA`s ? I like it very much.

Thanks. I have little time but hope to contribute if I see something tradeable.



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michael
hello again michael... the 2 ma's are a 5 and 10 ema applied to the close
Thanks Darren - BTW I noticed that watching higher TF charts gives me a better sense for cycles and fibs, it`s amazing.

I liked the webinar by St. Primo, but engulfing as all other bar formations only work for me in the proper context - reading FF I see that many took a 5 bar engulfing bullish bar on GBPJPY daily and got burned.

That`s why switching to lower TF for entries or reverse moves makes so much sense to me.

Many pips to all.

( edit : currently reading Graeme`s thread, this and Nomask´s " Trading Major Lines " does really explain a lot how to trade : keeping daily, weekly and monthly moves in the back of your head )


______________
michael
Be like water.
Quoting msmarple
Thanks Darren - BTW I noticed that watching higher TF charts gives me a better sense for cycles and fibs, it`s amazing.

I liked the webinar by St. Primo, but engulfing as all other bar formations only work for me in the proper context - reading FF I see that many took a 5 bar engulfing bullish bar on GBPJPY daily and got burned.

That`s why switching to lower TF for entries or reverse moves makes so much sense to me.

Many pips to all.

( edit : currently reading Graeme`s thread, this and Nomask´s " Trading Major Lines " does really...
yeah GJ looked like a perfect set up... except for the 50sma.. it was horizontal, trend was not on your side for longs
Hi Traders ,


The trade set-ups I see on Daily charts for today are :

EUR/USD - Long

USD/CHF - Short

I am demo trading this method as I just came across this thread last week. Does anyone see any other set-ups on Daily TF ?


Best of trades,

EZ
" Master Your Set-Up , Master Yourself "
Nice example of a Bullish Engulfing Doji pattern. Actual trade taken (small size).
Attached Image(s) (click to enlarge)
Click to Enlarge Name: ex 2.png Size: 150 KB
Click to Enlarge Name: DOM.png Size: 149 KB
Wyckoff VSA: (1) Supply vs Demand (2) Effort vs Result (3) Cause vs Effect
Quoting HiddenGap
Nice example of a Bullish Engulfing Doji pattern. Actual trade taken (small size).
Very nice trade HG. Does the doji bar has to have higher volume than the bars next to it?
Quoting mttrader
Very nice trade HG. Does the doji bar has to have higher volume than the bars next to it?
Thank you.

Don't tell my friends in the VSA thread, but volume was not involved in this trade.

The only two elements are the context of the price action and the price pattern. If I was looking at volume, I certainly would want it to be higher on the doji though.
Wyckoff VSA: (1) Supply vs Demand (2) Effort vs Result (3) Cause vs Effect
Quoting HiddenGap
Thank you.

Don't tell my friends in the VSA thread, but volume was not involved in this trade.

The only two elements are the context of the price action and the price pattern. If I was looking at volume, I certainly would want it to be higher on the doji though.
OK thanks. Hope your issues with volume on your charts gets resolved.
HG
What are you using, broker, software to get the DOM ladder ?


Quoting HiddenGap
Nice example of a Bullish Engulfing Doji pattern. Actual trade taken (small size).
If your not concerned about retracements are SR there would have been 2 winners trading primo's method. Here is some examples .We are looking for a trend --brake of lower high or over 50 sma.....in the uptrend we are looking for a down day red--then a green candle engulfing body only not wicks( the open of the green candle needs to be below the close of the previous down day. That would have been a nice run up on the last winner if we only knew I may give this a test run on the hourly charts if i get some swing points broke
Attached Image (click to enlarge)
Click to Enlarge Name: e prim.gif Size: 25 KB
n on the daily charts.
Hello,
I'm curious if anybody still trade using Engulfing method and if "yes" - what are the results.
What GMT Offset do you prefer for big timeframes? (GMT 0 / +1 / ...)

Thanks!
Quoting darrenlittle
I closed the week +8% about average, slightly above... that was trading engulfing and kangaroo tails, and the final pattern i trade that i haven't posted about it here yet because i didnt want to get away from the thread starters topic...
do you mean "kangaroo tails" the "inside bars?"

maybe open up a new thread for your own would be nice and to share / discuss your trading methods? i am glad to find your KISS trading methods.

but it has been 2 months since your last post?

hope to see your good work / posting soon.

cheers
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