Forex Engulfing Pattern Candlestick Trading Strategy
Forex Engulfing Pattern Candlestick Trading Strategy;
The Engulfing pattern is a major reversal pattern. It is made up of two candles that
are 2 different colors; red being a downtrend candle, and green being an uptrend
candle. This particular pattern is formed after a clear downtrend in the market. This
candle ideally opens lower that the 1st day’s close, then ideally closes higher than
the 1st day’s open, which will show the green candle completely engulfing the
previous red candle of the day before. The candle for the previous day shows that
the trend was losing momentum, the large body shows that the new direction has
started of with strength.
Typically, a Bullish Engulfing pattern reveals when the
buyers have stepped in giving a clear indication of a change in direction. NOTE: the
Bullish candle DOES NOT have to engulf the shadows/wicks of the previous
downtrend candle, only the body has to be completely engulfed. The bigger the engulfing, the stronger the signal.
Engulfing Pattern in this trading system is filtered by stochastic oscillator.
Time Frame is 240 min or higher.
Markets:any
Pattern Recognition Master
Stochastic Oscillator (8,5,3).
Rules for Engulfing Pattern Trading System
Long entry conditions
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Engulfing pattern buy;
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2) Stochastic Oscillator Crosses upward.
Short Entry Conditions
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Engulfing pattern sell;
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2) Stochastic Oscillator Crosses downward.
Exit position
Profit target 30-50 pips depends by currency pairs.
Stop loss 15 pips above or below at the entry bar.
In forex a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.
For every trading strategy one needs to define assets to trade, entry/exit points and money management rules.
How to install Forex Engulfing Pattern Candlestick Trading Strategy?
- Download Forex Engulfing Pattern Candlestick Trading Strategy.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex strategy
- Load indicator on your chart
How to uninstall Forex Engulfing Pattern Candlestick Trading Strategy?
To shut down an indicator, one has to remove it from the chart. At that, its drawing and recalculation of its values will stop. To remove an indicator from the chart, one has to execute its context menu commands of “Delete Indicator” or “Delete Indicator Window”, or the chart context menu command of “Indicators List – Delete”.
