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

News drove price to my pending short.

Daily view

I didn't get in on this one as I was watching AUDUSD but whoa!.

Price, indicators? Which will you choose?

I make 11 trades today only one lost, on my demo account 61 usd earn

I'm waiting to go back to the level indicated (violet) + proper configuration.

Weekly trend is up.

Looks good JB

Watching this one.

my vision of usd / cad is this ... comments?

Just wanted to say very good system for trading i am personally trading on same analysis but i trade first breaks not bounces. For example you get strong lows break on strong body candle thats where i get in. But point of analysis and trade setups are the same.
Just maybe one question, why trading only weekly and H4, this method works on any TF.

Hi jp1000,
The H4 and weekly works in well with my time schedule. However I will admit I am looking at 5minute time frames when I have time. I took a small trade during Asian yesterday for about 15 pips

This is definitely different than the method in my PDF but the principles are the same.
USDCAD H4 engulfing south. On the 5min I'll be looking for PA at the red horizontal line.

Hi Winston:

Are you looking at going long at the bottom rectangle as well? Do you look for "fresh" engulfs?

This one at the bottom looks to be a reaction to another zone on the left?

Thank you

Trading this method came about as a result of observing price reactions at areas where price seemed to move dramatically out of an area of relative consolidation. This "drama" is usually seen as a large bearish or bullish candle that often engulfs significant price action to its' left. Waiting for price to come back to these areas and trading a proper reaction has been so far reasonably profitable for me.

However as I have studied these areas I have begun to learn more about them and thus my trading has been changing from that which the attached PDF describes. Much is still the same but the accuracy and finesse of my trading is changing a bit. I am still trying to get my head around it completely but when I do I will revise the PDF a bit. My trades are still being recorded on my Trade Explorer.

I will be posting more trades but they may appear to violate the PDF. I will try to explain as I go along. Please bear with me.

News drove this to target.

Studying some charts and this is my read of eurusd H1. 1 was a nice supply area that was violated or engulfed at 2. This kind of picture created by 1 and 2 to me is prime trading territory. When price came back at 3 the response was predictable. Pretty much the exact same thing happens at 5 where price engulfs 4 but this time it revisits the area much sooner at 6. Again this pattern created by 4,5 and 6 is crucial.

there are many ways to skin the cat
if using this method you score money, keep going friend

i just amazed by the fact that your thread didnt have much response...but it's proving one thing...humand tends to like complicated thing
don't worry, you're on the right track

Thanks for your kind words.

Maybe a little weird but this chart holds many clues to successful trading. Blow it up on your platform and study it on different time frames. I'm on my second glass of cabernet so I'm lazy to provide detailed explanations right now. Maybe later this weekend. Cheers!

I primarily use Engulfing setup, because it's more powerful than Pin Bar, we have to use a lot of filters, or we have to use high timeframe to have an accurate pin bar setup. And with Engulfing setup, I made very good result. Thank you for your wonderful thread !

Hope everyone's weekend is off to a great start. I thought I would provide some explanation of the USDCAD chart above. Attached is a numbered chart I will go by.