(binned per thread starter’s request) The Engulf Method

X

Weekly chart showing clear trending. H4 chart with levels marked. I prefer the lower level. You can see the large bullish candle highlighting and emphasizing the support area where I will wait for price to react. I'm not interested in anything else until another level is created or price breaks through and moves to a lower level.

EURGBP. Weekly in down trend. H4 levels as marked. Red arrow shows a hit.

CADJPY. Trade I took during Asian yesterday and closed today. I took the bounce at the first red arrow. Closed at swing low. My trade explorer verifies the trade.

These are the pairs I'm watching for next week.

Nice one Winston.I too trade Engulfing bars at similar levels to yourself,good luck with thread

Tedge

subscribe, I love price pattern : pin bar + engulfing + inside, but I see that the engulfing patterns are accurary.

I do something very similar to this as well on one of my entry methods. good thread !

Hi Winston, nice thread.

Do you think you need to mark .the SR, if price has turned and engulfed is that not enough evidence that SR exists at that price anyway?

I'm not sure I completely understand you 60. I do believe in marking the s/r areas that are likely to be revisited in the near future. I don't like to mark-up every s/r there is as this just messes up the chart.

An engulf in itself probably does signal the existence of s/r which may be what you are referring to. Any engulf could be a trend continuation or trend reversal. You never know. At this point I am satisfied with just taking the with-trend engulfs as defined by the weekly candles. I am looking at counter-trend trades and if I find something that is reliable I may include it here. For now I haven't found anything that gets me excited. In addition I am looking for a method that I only need to look at every 4 hours. I can wake up every 4 hours! LOL. I know in your thread you are very aggressive playing these engulfs and you are able to "hedge". Being in the US I cannot hedge.

Thanks for your comments 60 and although silently I read every post in your thread with interest.

Regards

Very nice [highlight=rgb(244, 246, 249); color:rgb(0, 0, 0); font-family:verdana,helvetica,sans-serif]thread Winston[/highlight]

[highlight=rgb(244, 246, 249); color:rgb(0, 0, 0); font-family:verdana,helvetica,sans-serif]Can you present some more [/highlight]examples

Ty for [highlight=rgb(244, 246, 249); color:rgb(0, 0, 0); font-family:verdana,helvetica,sans-serif]thread, subscribed[/highlight]

H4 engulfs creating more supply when price returns.

Waiting for price to come back to these areas.

Hi Winston.

Great thread start. Clean and simple!

Count me in, seems you have here a powerful system. I appreciate your devotion to share this with us here, and i have a question for now: It helps to have a NY close broker or is not so important?

thx
DNTme

Hey DNTme,
No. I don't think it makes any difference. There are some threads that like to use NY closes only but I think that is so everyone can be on the same page.

I understand the topmost level but can you please explain how you defined the bottom level?

The bottom level was a recent well-defined swing low (support) and where PA at the right completely engulfed the price structure within the yellow box. Engulfs of areas/zones are important occurrences. When price comes back to these breeches we should pay attention to the PA in those areas.

We can never know for sure where price will react. But we can mark key areas on our charts where price made important moves. I pay attention to areas where price breaks free of ranging and moves away decisively. To me this is a key area. In a trending market these areas have a high probability of causing trend continuation. An engulfing candle at these areas for me is a signal to trade. Anyway much more to come. Thanks to everyone for following and please don't hesitate to ask any question.

i been trading price action for years, and your definition of engulfing bar is wrong

the high of the EB needs to be higher than previous bar...and the low needs to be lower...as it needs to ENGULF the previous bar

Hi Winston.

I'm curious about trade #1. You said you enter after the bar closes and I assume your target is the line drawn? In that case wouldn't you get RR lower than 1? I mean, for Engulfing Bar I assume the SL would be above the bar right?