Daily and H4 engulfing price action | Page 2 | Forex Factory

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Daily and H4 engulfing price action

  • #21
  • Edited 7:45pm May 27, 2013 7:44pm | Edited 7:45pm
Quoting Gumrai
{quote} Hang on, in post#1 you are drawing your rectangle from the open and close.Now you are using the high and low???
Not my thread, friend, just trying to demonstrate how to apply the Rectangle to cover the price action of 1 particular day

It is my understanding that is what AndyG was using the Rectangle for - to highlight the 4 Hour bars when the time frame was changed.

Just trying to help, I believe the Rectangle has nothing to do with the trade entry, stop loss, exit, so not too really worry where to draw it -

- no difference to the trade outcome I'm sure of that.

Thanks for your concern
It takes a lot for me to IGNORE you, but you can try.
  • #22
  • May 28, 2013 3:44am May 28, 2013 3:44am
Quoting Xela
There's sometimes some confusion in threads of this nature, about exactly what "engulfing" means. The factors that contribute to that seem to include different people's understandings of "bars" and "candles", and exactly what "engulfs" what. For people looking at candles, strictly speaking the open and close can't both "engulf" those of the previous candle, because forex doesn't gap, and each candle opens at the same level at which its predecessor closed. Bars and candles obviously present exactly the same information, but with a very...
Xela, thanks for your comments. Yes confusion can creep in regarding engulfing bars/candles but I think I defined what i was looking for in my first post (whether or not the deinition is precisely correct). All I am trying to do is explain that when this pattern occurs (call it what you will) there is a fair possibility of a trade setting up.
Cheers
AndyG
  • #23
  • May 28, 2013 3:49am May 28, 2013 3:49am
Quoting Erebus
To set the Rectangle, to properly cover the day in question, you must edit the time settings and check that the High and Low are also correct When you set the time properly, that is from 00:00 to 00:00, on the Day chart, the bars covered will show appropriately in the lower time frames Best and easy to see on these charts, same day as the example in post # 1 Regards, E. {image} {image}
Hello Erebus and thank you for you insight. You are of course correct, thanks. As you say in a later post it makes very little difference to the mechanics of the potential trade in relation to the trigger point, SL/TP position etc.
Cheers
AndyG
  • #24
  • May 28, 2013 3:54am May 28, 2013 3:54am
Quoting Gumrai
{quote} There is always some confusion, especially as you say when the bar's open is the same as the previous bar's close.Maybe it would be best to describe it asA bullish bar following a bearish bar - close is higher than the previous bar's openorA bearish bar following a bullish bar - close is lower than the previous bar's open Of course, this may not strictly apply to a Monday bar, when there may be an opening gap
Thanks Gumrai, perhaps I could have described it more precisely, agreed. However, I do not want this thread to become an entangled discussion on definitions of bars/candles etc. rather a constructive exchange of views on the principles and mechanics of the method. Thanks for your post.
Cheers
AndyG
  • #25
  • May 29, 2013 2:06am May 29, 2013 2:06am
Some small success with GBPUSD and AUDUSD recently. Took 40 pips each - chickened out at that level - need to build the confidence to let it run.
AndyG
  • #26
  • May 29, 2013 1:33pm May 29, 2013 1:33pm
These are recent possible trade setups on the H4, following "engulfing" bars identified on the Daily charts.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EURUSD H4.jpg Size: 233 KB
Click to Enlarge Name: GBPUSD H4.jpg Size: 229 KB
Click to Enlarge Name: USDJPY H4.jpg Size: 223 KB
  • #27
  • May 29, 2013 1:51pm May 29, 2013 1:51pm
A couple more for your consideration. The yellow arrows are the direction of the "engulfing" bar on the Daily TF.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EURJPY H4.jpg Size: 244 KB
Click to Enlarge Name: USDCHF H4.jpg Size: 222 KB
  • #28
  • May 30, 2013 7:17am May 30, 2013 7:17am
Seems pretty simple, thanks. I think the real thing going for it is the potential risk reward. As an engulfing usually means a strong move has just begun so you should be able to catch some good trends. I wouldn't take the 1:1 RR, I'd stretch it to 3:1 or more. Watch candle or price action, maybe go to an 8hr chart to look for an exit.
"Even if you fall down face first, you still went forward."
  • #29
  • May 30, 2013 10:22am May 30, 2013 10:22am
Quoting juicyt
Seems pretty simple, thanks. I think the real thing going for it is the potential risk reward. As an engulfing usually means a strong move has just begun so you should be able to catch some good trends. I wouldn't take the 1:1 RR, I'd stretch it to 3:1 or more. Watch candle or price action, maybe go to an 8hr chart to look for an exit.
Hello juicyt, thanks for your post. Yes I agree the potential RR seems to be good - its alot easier in hindsight! I am still learning to minimise intervention and let the market do its thing once a trade has triggered - hopefully I will improve with time.
Cheers
AndyG
  • #30
  • May 30, 2013 11:46am May 30, 2013 11:46am
Some more minor success today.
Cheers
AndyG
Attached Image (click to enlarge)
Click to Enlarge Name: 30 May.jpg Size: 265 KB
  • #31
  • May 30, 2013 11:53am May 30, 2013 11:53am
.........and the one that got away! (GBPNZD H4)
Attached Image (click to enlarge)
Click to Enlarge Name: GBPNZD H4.jpg Size: 76 KB
  • #32
  • May 30, 2013 9:24pm May 30, 2013 9:24pm
Quoting AndyG
.........and the one that got away! (GBPNZD H4) {image}

This was not an engulf set-up... it was a rejection bar...
  • #33
  • May 30, 2013 11:05pm May 30, 2013 11:05pm
Yeah I get a rejection/longwick candle. I don't know if different brokers have differenty daily bars... but
"Even if you fall down face first, you still went forward."
  • #34
  • May 31, 2013 3:53am May 31, 2013 3:53am
Hey prof8t and juicyt, I am on GMT+2, don't know if that or Broker makes a bit of a difference but heres what I was looking at.
Attached Image (click to enlarge)
Click to Enlarge Name: GBPNZD.jpg Size: 259 KB
  • #35
  • May 31, 2013 5:07am May 31, 2013 5:07am
I think there will always be some debate as to what constitutes an engulfing candle. There is obviously a true definition but there are some who have different interpretations. For myself I like to see the whole of the candle, wicks and all engulfed. Some candles that people would call engulfing I would just class as significant, but that's just me.
  • #36
  • May 31, 2013 5:52am May 31, 2013 5:52am
Quoting handy148
I think there will always be some debate as to what constitutes an engulfing candle. There is obviously a true definition but there are some who have different interpretations. For myself I like to see the whole of the candle, wicks and all engulfed. Some candles that people would call engulfing I would just class as significant, but that's just me.
Yes of course, I agree - I'm just calling as I see it by the definition I set out at the start of the thread. Thanks for your post.
AndyG
  • #37
  • May 31, 2013 6:06am May 31, 2013 6:06am
Yeah I am not too hung up on it either, it should be a strong move either way.. AngyG, have you backtested this?

jt
"Even if you fall down face first, you still went forward."
  • #38
  • May 31, 2013 6:41am May 31, 2013 6:41am
Quoting juicyt
Yeah I am not too hung up on it either, it should be a strong move either way.. AngyG, have you backtested this? jt
Yes, as I said in the first post I did a visual backtest on the major pairs to the start of the year - I don't have statistics and exact pip count but was encouraged by how it looked.
AndyG
  • #39
  • May 31, 2013 12:05pm May 31, 2013 12:05pm
I have just joined this thread and started reading, I hope to learn something new on price action here...
  • #40
  • Jun 1, 2013 7:30am Jun 1, 2013 7:30am
Quoting Red Herring
I have just joined this thread and started reading, I hope to learn something new on price action here...
Welcome Red Herring, I also hope to learn from the experienced and helpful contributors in FF. Hope this idea works and we can all make some pips.
AndyG
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