DislikedHere's an engulfing +2 (EURUSD 1hr) as in Primo's webinar. Let's see what happens...
http://i39.tinypic.com/4jkd9z.gifIgnored
If you see the chart below you can first see that several hours ago there was a pin bar or hanging man indicating a possible reversal of trend
The next candle pierced the pivote line and has most times you then get a rejection of resistance 1 and causes a tempory pullback..
What we would then wait to see is if the price uses the pivot as support..
The price did use the pivote as support and infact your sell entry was right on pivote support.
The price nearly always then bounces off the pivote as it did here you now have a engulfing candle.
This is a good entry. the only worry I would now have is the resistance 1 Line but I knew you could get 10 pips if the price was to stall at this level..
The pice did not stall and continued to resistance 2 giving a 2:1 risk reward.
A classic example why a EA will never out trade a good trader..
Hope this helps anyone to understand the differance between a powerful entry and a week entry..
Trading without pivots is like going shopping naked..
Thank You James16, Fijitrader, Mbqb1, ghous, Pinbar and Jarroo. cpfleger