Engulfing Bars Trading Indicator Review Forex Academy

Part II - 10 Minute/Day Trading Strategy

Part II - 10 Minute/Day Trading Strategy
Access Part I here: https://www.reddit.com/Forex/comments/h0iwbu/part_i_my_10_minuteday_trading_strategy/
Welcome to Part II of this ongoing series. How many parts will there be? No idea. At least 4-5, I guess. I'd rather have this broken down into digestible chunks than just fire hose you with information.
Part I was really just a primer. If I'm using the whole baking a cake analogy, then in Part I we covered what kind of cake we're baking. I will not cover in this post where we look for entries and exits, that's coming next. Part II is going to cover what ingredients we need and why we need those ingredients in greater detail.
What Kind Of Strategy Is This Again?It's my 10 minutes per day, trading strategy. I think the beauty of this strategy is that it allows you to take a good number of trader per week without having to commit an inordinate amount of time to the screens. This is both a mean reversion and trend-continuation based strategy. It is dead simple to learn and apply. I'd expect a 10 year old to be able to make money with this.
The List Of Ingredients & Why We Use These Particular Ingredients
*I will have an image at the end of the post showing a textbook long and short setup*
Bollinger Bands: Bollinger Bands (BB) have a base line (standard is the 20SMA, which is also what we will use for this strategy) and two other trend lines (known as the upper Bollinger band [UBB] and lower Bollinger band [LBB]) plotted 2 standard deviations away from the 20SMA. The idea behind BB is deviously simple - the vast majority of price action, approx. 90%, takes place in between the two bands. In other words, when price trades off the UBB or LBB, you could consider prices to be overbought/oversold. However, just because something is OVERbought does NOT mean its run is OVER. Therefore we need additional tools to make sure we are using the BB as effectively as possible. TLDR: BB help contextualize where to look for our technical setups using this strategy. Finding the candle/bar pattern is not enough. We need to make sure the setup is in the 'right' part of the chart. We accomplish that using the BB.
Stochastic Oscillator: The Stochastic Oscillator (Stochs) is a secondary momentum indicator. Because it is an oscillator that means the signals it generates are range-bound between 0 and 100. There are tons of momentum indicators out there. Theoretically you could swap out the Stochs for RSI or MACD. My hunch is that you won't see a measurable statistical difference in performance if you do. So why Stochs? Because I like the fact you have the %K and %D lines (you can think of them as moving averages) and the fact that the %K and %D lines crossover is a helpful visual aid. Like any other momentum indicator, the Stochs will generate overbought and oversold signals. We use the Stochs to help back up what the BB are telling us. If price is trading at, or even broken out of, the UBB and Stochs are also veeeery overbought that can be potentially useful information. It doesn't mean we have a trade necessarily, but it is a helpful piece of data.
Fibonacci Retracement & Extension Tool: This tool is OPTIONAL. The only reason I use this tool for this strategy is to integrate a mechanistic means of entry and exit. In other words, we can use fibonacci levels to place limit orders for entry and profit taking, and a stop order to get us out for our pre-defined risk allocation to each particular trade. If you DON'T want to use the fibs, that is perfectly okay. It just means you will add a more discretionary layer to this strategy
Candlestick/Bar Patterns: There isn't a whole lot to say here. We look for ONE formation over, and over, and over again. An indecision bar (small body, doesn't close on its highs or lows) followed by the setup bar which is an outside bar or an engulfing bar. It doesn't particularly matter if the setup bar is an engulfing bar or outside bar. What matters is that for a long trade the setup bar makes a HIGHER HIGH and has a HIGHER CLOSE relative to the indecision bar. The opposite for a short trade setup. The bar formation is what ultimately serves as the trigger for placing orders to take a trade.
*MOVING ON* Now We Get Into The Setup Itself:There are 3 places where we look for trades using this strategy:
  1. Short off the UBB (Here we want to see Stochastics overbought and crossing down. Bearish divergence is even better)
  2. Long off the LBB (Here we want to see Stochastics oversold and crossing up. Bullish divergence is even better)
  3. Long/Short off the Middle Bollinger Band (Here if you are looking for a short trade off the MBB you ideally want Stochs overbought. Vice versa for a long trade. NOTE: Often when taking trades off the MBB, Stochs WON'T go overbought/oversold. Because this doesn't happen often, I don't let it stop me from taking trades off the MBB.)
The actual setup is very simple and straightforward. We look for our candle/bar formation in conjunction with points 1 through 3 from the above.
There will be other nuances I will cover in terms of how to make the strategy more effective in Part 3. For example, I will go into much more detail about how the shape of the BB can tell us a lot about whether a currency pair is likely to reverse or not. I will also cover how to gauge the strength of the setup candle and a few other tips and tricks.
Technical Nuances: You can overlay a lot of other traditional technical analysis on top of the above. For example you can look for short trades off the UBB in conjunction with a prior broken support level that you now expect to be working overhead resistance. If you want to go further and deeper, of course you can. Note: the above is about as far as I went when overlaying other kinds of analysis onto this strategy. I like to keep it simple, stupid.
TEXTBOOK LONG TRADE OFF LBB:

https://preview.redd.it/e06otysgsh451.png?width=2820&format=png&auto=webp&s=101b3eed1b42512d639644bcc096d1026e558f17

TEXTBOOK SHORT TRADE OFF UBB:
https://preview.redd.it/yfg02yjhsh451.png?width=2820&format=png&auto=webp&s=18b427995f3dcecb22e1ae7f15cd5b3cd53c18e4
TRADE OFF MBB:
https://preview.redd.it/8kvzknaish451.png?width=2820&format=png&auto=webp&s=2f1e6113475193e8b812bface880a77e82ad7eeb

And that's a wrap for Part II.
submitted by ParallaxFX to Forex [link] [comments]

BEST ENGULFING CANDLES FOREX TRADING SYSTEM Forex Engulfing Candle Pattern Indicator Trending Engulfing Candlestick Strategy Pattern BloodHound Workshop - Engulfing Bars & 5 Indicators on MTF Engulfing Indicator Signal in Action :: Very Powerfull Tool

Engulfing Bar A barra engulfing é também um Pin bar dividido em duas barras, muito parecido com um Rail road bares set-up. Bullish e Bearis... Home Forex MT4 Indicators Engulfing - trade on candlestick patterns. Engulfing – trade on candlestick patterns . The Engulfing is a useful forex indicator based on candlestick patterns analysis. To be precise, this indicator detects on the charts a specific candlestick pattern called “Engulfing Candle Pattern”. It may be bullish engulfing or bearish engulfing, whenever such a signal is ... Bearis Engulfing (according Bulkowski): "First candle: A white candle. Second candle: A black candle, the body of wixh overlaps the white candle's body." Focus on body, it is not contain the shadows or spikes. Sep 6, 2018. by Vinetum on Best-MetaTrader-Indicators.com. Engulfing. Very good on Daily Charts. Thnx a lot for sharing. Regards. Aug 24, 2016. by Eric on Best-MetaTrader-Indicators.com ... Engulfing Bars is an indicator that can be found on the MQL5 marketplace, there may be other indicators with very similar names, due to this we have provided a link to the one we are looking at below. The indicator was first uploaded on the 8th of January 2016 by… Read more about Engulfing bar in our article here>> Profit F offer you free download 2 EngulfingBar indicators for MetaTrader 4 platform. 1) First “OutSideBar” indicator shows Engulfing candlestick by red and green arrows. This MT4 indicator has built-in alert system: Download free “OutSideBar indicator” The #1 Forex Forum for Coders & Analysts. Expand your MetaTrader platform with our advanced, non-repainting MT4/MT5 Indicators, Strategies & EA's, today. Here is an Engulfing Bar indicator I would like to share with everyone. I've backtested this with my own Algo and it seems very good. Hope someone finds valu… Logout; Register; New posts; Unanswered topics; Active topics; Thanks list ... Forex Guru Indicators. forex harmonic pattern Finder. Engulfed meaning For more validity, if the engulfing candle’s excessive and low engulfs the previous candle’s high and low, the pattern is found to be extra valid morning star candlestick. The chart underneath shows specific examples of numerous bullish and bearish engulfing candlestick styles. How to trad with Forex engulfing pattern ...

[index] [17974] [29016] [25258] [13016] [29438] [11969] [3418] [6669] [5203] [3552]

BEST ENGULFING CANDLES FOREX TRADING SYSTEM

Here is a very good and a Profitable Forex Trading System. You can also incorporate the Inside Bar Forex Trading System and trade both Systems together. Please note that I have stopped selling my ... All about Trading in Forex Marked Engulfing Indicator Signal in Action :: Very Powerfull Tool ----- Music: Distrion & Alex Skrindo - Lightning [NCS Release] Distrion & Alex Skrindo - Entropy [NCS ... All indicators must agree on the trend, and we use a second time frame. 4) A simple Triggerline crossover signal with a MACD filter. 5) A simple Triggerline crossover Exit logic. The Forex Engulfing candle pattern indicator is know to have strong reversal potential. This is why it is among the candle patterns that open new potential on the chart. Check out our video that ... How to use engulfing candlesticks to get into early trends (before others) whether trading Forex, stocks or e-minis. Also works equally well on both day trading and swing trading time frames.

https://binaryoptiontrade.sepdogewe.ml