Hi Wend... you're on the right track here, there's so much I could add in the way of ideas and tips that it might be more of a hinderance than a help, So, I will try and give some very simple clues to get you in the more profitable ball park...
what actually is an engulf on the daily TF? what does it signify?
Well an engulf is a breakout, price is breaking out of a consolidation or a trend and closing over the S/R on that tf. This tells us something really important, it tells us that price will continue to an S/R line on a HIGHER tf. (in this case the weekly tf). Have a look, pull up a chart, look for an engulf on daily, mark the lowest low or high of that move... it will be a weekly or higher tf S/R line (or maybe a monthly!)
So an engulf is not just a candle pattern, it is how price moves, without the engulf price would always go in the same direction or sideways..... (there's engulf's in disguise too, you need to learn them also..)
Price moves from point A to point B by a flow of engulfs up the times-frames from the lowest to the highest so we can track the future movement of price precisely by using these 'signposts'... A better way of describing it may be to say 'When a weekly downtrend ends the m5 will engulf against it first'.
ok, enough on that... there's the holy grail in that already... thats real price action and real S/R...
So knowing that an excellent way of trading daily engulf is (if this is possible for you time wise)... wait for a daily engulf, let price retrace, trade the next h4 or h1 engulf in the same direction. You instantly increase your reward and greatly reduce your risk, if the daily bar retraces (which it will 8 or 9 times out of 10)there has to be an engulf on the lower tf for the move to continue.
hope that might help somehow...
what actually is an engulf on the daily TF? what does it signify?
Well an engulf is a breakout, price is breaking out of a consolidation or a trend and closing over the S/R on that tf. This tells us something really important, it tells us that price will continue to an S/R line on a HIGHER tf. (in this case the weekly tf). Have a look, pull up a chart, look for an engulf on daily, mark the lowest low or high of that move... it will be a weekly or higher tf S/R line (or maybe a monthly!)
So an engulf is not just a candle pattern, it is how price moves, without the engulf price would always go in the same direction or sideways..... (there's engulf's in disguise too, you need to learn them also..)
Price moves from point A to point B by a flow of engulfs up the times-frames from the lowest to the highest so we can track the future movement of price precisely by using these 'signposts'... A better way of describing it may be to say 'When a weekly downtrend ends the m5 will engulf against it first'.
ok, enough on that... there's the holy grail in that already... thats real price action and real S/R...
So knowing that an excellent way of trading daily engulf is (if this is possible for you time wise)... wait for a daily engulf, let price retrace, trade the next h4 or h1 engulf in the same direction. You instantly increase your reward and greatly reduce your risk, if the daily bar retraces (which it will 8 or 9 times out of 10)there has to be an engulf on the lower tf for the move to continue.
hope that might help somehow...
tradewith60