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  • Post #121
  • Quote
  • Edited at 4:27pm Jan 7, 2014 4:15pm | Edited at 4:27pm
Quoting lucariga
Anyone took this 2 4H trades on USD/CAD? I didn't because tey were straight into Daily and Weekly highs... As for the rules am I doing it right or I should have traded those? {image}
I would say your first circled signal was legit. Solid 2-bar engulfing. The second circled signal isn't as great, in my opinion. Yes, it was a solid H4 candle, but the red candle that it engulfed was very small. The real body is almost nothing. For an engulfing bar to mean something, it has to engulf something meaningful.

This is not a hard and fast rule but more of a 'guideline.' In general, assume S/R will be broken until it shows you otherwise. Don't be scared taking trades into S/R. If you're getting solid engulfs in that direction, just act like S/R isn't even there. However, monitor the trade closely to see how price ACTUALLY reacts. In other words, don't let potential S/R keep you from entering, just be on guard.

I did end up taking the UCad long at the beginning of the week. It was a decent H1 engulf above daily open. I have not added to the stack yet. Was away and missed some signals, and I don't normally trade this pair much. It has a much smaller average daily range than other pairs. So I just bought it and let it rip for the week. My initial risk was 35 pips, about 10 pips below the H1 swing low. I have now moved stop to +100 pips (3R), just below the current H4 low and PMH. Still has some decent room to breathe at the moment.

I show you this not to brag, but to show you that it's real. I have taken more losses than wins this week but am in profit overall so far. Just an example of holding positions for multiple R's instead of 1:1RR with 80% win rate. Keep in mind I'm making MINIMUM 3:1 on this trade so far. It still has about 1R of room to move, so it could potentially keep going.

The red arrows are other potential stacking areas in addition to my one entry.

Attached Image (click to enlarge)
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The second screenshot is a one-time deal to show you that I don't bullshit.

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Quoting Ap3
{quote} I would say your first circled signal was legit. Solid 2-bar engulfing. The second circled signal isn't as great, in my opinion. Yes, it was a solid H4 candle, but the red candle that it engulfed was very small. The real body is almost nothing. For an engulfing bar to mean something, it has to engulf something meaningful. This is not a hard and fast rule but more of a 'guideline.' In general, assume S/R will be broken until it shows you otherwise. Don't be scared taking trades into S/R. If you're getting solid engulfs in that direction,...
Great trade If only you would have posted it in live market......

Do you think you will post some live trades like this one in the future (maybe only the 4H trades)?
I think it would be the best way to learn for any of us because we could see the market movements and your ideas regarding your entries...

Thanks in advance for your effort.
Quoting lucariga
{quote} Great trade If only you would have posted it in live market...... Do you think you will post some live trades like this one in the future (maybe only the 4H trades)? I think it would be the best way to learn for any of us because we could see the market movements and your ideas regarding your entries... Thanks in advance for your effort.
Respectfully, I feel the best way to learn something is by doing, not watching. This strategy is simple enough and has a solid enough foundation for each trader to make small adjustments according to personal style. Not adjustments TO the rules in Post #1, but WITHIN the rules. It's like in The Matrix. Once the rules are mastered, they can be bent.

I am a trader first, Forex Factory poster second. I do realize there is benefit in live trade calls. I will make an effort to post some going forward but not at the expense of my personal trading. So in the meantime, my advice for anyone interested is to just jump right in and start trading it yourself. *I'm not advocating everyone trade real money right off the bat. That is your decision and responsibility.
Quoting Ap3
{quote} Respectfully, I feel the best way to learn something is by doing, not watching. This strategy is simple enough and has a solid enough foundation for each trader to make small adjustments according to personal style. Not adjustments TO the rules in Post #1, but WITHIN the rules. It's like in The Matrix. Once the rules are mastered, they can be bent. I am a trader first, Forex Factory poster second. I do realize there is benefit in live trade calls. I will make an effort to post some going forward but not at the expense of my personal trading....
Thanks again. I love your trading system as long as the 60's one. You have changed the way I look at charts.

Your effort is so much appreciated
Could someone please tell me how to quote multiple posts in one reply?
  •  Jamz
  • | Joined May 2012 | Status: Tops and bottoms are for bikinis | 798 Posts
Quoting Ap3
Could someone please tell me how to quote multiple posts in one reply?

I think you just copy and paste but use the quotation marks next to the emoticons......
Quoting Ap3
Could someone please tell me how to quote multiple posts in one reply?
I think I would use notepad....
open it, then
click 'quote' on the first post you want.... copy/paste into notepad... then cancel.
click 'quote' on the second post you want.... copy/paste into notepad... then cancel.
click 'quote' on the third post you want.... copy/paste into notepad... then cancel... etc.

Once assembled on notepad... then open a 'reply to thread' and paste all the quotes together...
separated by your responses to each.
Cheers...
btw... what time zone are you in?
"You Never Know.....Until You Find Out."
Quoting goldenequity
{quote} I think I would use notepad.... open it, then click 'quote' on the first post you want.... copy/paste into notepad... then cancel. click 'quote' on the second post you want.... copy/paste into notepad... then cancel. click 'quote' on the third post you want.... copy/paste into notepad... then cancel... etc. Once assembled on notepad... then open a 'reply to thread' and paste all the quotes together... separated by your responses to each. Cheers... btw... what time zone are you in?
Thanks. West coast US.
Ctrl + Quote (top of the post you want to quote) ... that will open a new tab. Do this for each quote needed. Then copy and paste all the quotes in one of the reply field.
MT4/MT5 EAs/Indicators/Alerts coder
Quoting FerruFx
Ctrl + Quote (top of the post you want to quote) ... that will open a new tab. Do this for each quote needed. Then copy and paste all the quotes in one of the reply field.
Perfect, thank you.
Quoting Ap3
{quote} Thanks. West coast US.

ah... ok... I'm next door. **yawn**
"You Never Know.....Until You Find Out."
Anyone long on last GBP/USD 4H?

Also EUR/USD, USD/CHF and NZD/USD 4H are forming a nice engulfing
Great thread AP3, love your style

I read that you only use the engulfing pattern. Somebody proposed to use other reversal patterns, but they aren't the same .. Except for the Hammer (Bull) - Shooting star (Bear).

In essence they are exactly the same .. An engulfing pattern is a price bar moving down for x pips (from open to close) and later a price bar that moves back up for x+n pips and thus engulfing the body of the first one.

When we look at the Hammer that is happening too. New bar opens, price moves all the way down for x pips, but than the second move 'engulfs) the previous price movement for x+n pips, closing higher than the open ..

That is why ( on 4H chart ) an engulfing pattern is often a hammer or shooting star with different brokers .. just because there is a time difference .. but they mean the same
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Don’t ever let someone tell you that you can’t do something.
Quoting lucariga
Anyone long on last GBP/USD 4H? Also EUR/USD, USD/CHF and NZD/USD 4H are forming a nice engulfing
I got long GU on the H4 engulf.

Short EU on the most recent H1 engulf (3-bar), and a limit order to sell more if H4 engulf breaks.

Still long UCad.

Attached Image (click to enlarge)
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Attached Image (click to enlarge)
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Quoting Ap3
{quote} I got long GU on the H4 engulf. Short EU on the most recent H1 engulf (3-bar), and a limit order to sell more if H4 engulf breaks. Still long UCad. {image} {image}
For SL you do you use always the biggest between swing low/high and engulfing low/high?
Quoting lucariga
{quote} For SL you do you use always the biggest between swing low/high and engulfing low/high?
Case-by-case basis. Depends on the surrounding price action.
Quoting Armacom
Great thread AP3, love your style I read that you only use the engulfing pattern. Somebody proposed to use other reversal patterns, but they aren't the same .. Except for the Hammer (Bull) - Shooting star (Bear). In essence they are exactly the same {image}
Good luck to you. I prefer open-to-close same direction momentum.
Quoting Ap3
{quote} Good luck to you. I prefer open-to-close same direction momentum.
Is good to have strong convictions Good luck to you too and bravo again with your thread
Don’t ever let someone tell you that you can’t do something.
Quoting Ap3
{quote} Case-by-case basis. Depends on the surrounding price action.
Entry are really simple, I think SL is the most tricky and important part (as in all systems) because it involves also TP due to the 1:1 R:R.

I need to work on this.
Quoting lucariga
Anyone long on last GBP/USD 4H? Also EUR/USD, USD/CHF and NZD/USD 4H are forming a nice engulfing
O yes l did
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