Access Part I here: https://www.reddit.com/Forex/comments/h0iwbu/part_i_my_10_minuteday_trading_strategy/submitted by ParallaxFX to Forex [link] [comments]
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:
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:
TEXTBOOK SHORT TRADE OFF UBB:
TRADE OFF MBB:
And that's a wrap for Part II.
Bearish Engulfing Bar Example ... ForexSchoolOnline.com helps individual traders learn how to trade the Forex market. We Introduce people to the world of currency trading. and provide educational content to help them learn how to become profitable traders. we're also a community of traders that support each other on our daily trading journey. Finixio Ltd, 2 Ferdinand Place, London, NW1 8EE ... came across this thread as I was looking for the original 4 hour engulfing bar thread I read 2 years ago. it had a risk to reward of 1:1 and win rate of about 60%. this gbpusd set up worked out in the end. my question is why would the bulls buy at the high. they would buy at recent s/r levels of 1.25 and it was a good trending period at that point of time. Bullish Engulfing" and "Bearish Engulfing pattern trading system si based on the model candlestick pattern Engulfement. ... Forex Indicator:Engulfing Bar Alert. Engulfing Bar Alert.rar. compressed file archive 689 Bytes. Download. Candlestick Forex Strategies. Models Candlestik Patterns - Forex Strategies - Forex Resources ... 21# 100 pips daily - Forex Strategies - Forex Resources - Forex ... Types of Forex Engulfing Patterns. As you may have probably guessed, the Engulfing trading pattern has two variations depending on its potential. The first one is the bullish Engulfing pattern, and the other is the bearish Engulfing pattern. Let’s now go through each of these two Engulfing types: Bullish Engulfing. The bullish Engulfing pattern could be found during bearish trends. It starts ... Download Engulfing Bar indicator for MT4. Engulfing Pattern Definition, Engulfing-Candlestick Pattern meaning. What Is “Engulfing Candlestick Pattern” in Forex? The engulfing candlestick patterns, bullish or bearish are one of the easiest of candlestick reversal patterns to identify. Because these candlestick patterns are two-candlestick patterns, they are more valid and are often looked ... True engulfing candlestick patterns are almost unknown in forex as there is usually no major difference between one candle's close and the other's open, so overlap is rare and not meaningful. Also Thomas Bulkowski suggests these are better continuation indicators, suggesting a trend will accelerate, rather than trend reversal indicators. Finally, all studies of candlestick patterns have been ... Bearish Engulfing Bar Candlestick Pattern. The engulfing bar is one of the more reliable candlestick patterns when traded under the correct conditions. For the bearish engulfing bar to form price needs to fully engulf the previous candle. This shows that the momentum has completely shifted. The example below shows a bearish engulfing bar. Price moves higher above the high of the previous ...
[index]          
Make a Living in 1 Hour a Day Trading the 3 Bar Play!! - Duration: 34:34. Live Traders 1,541,223 views. 34:34. Candlestick Charting - Vol 13 - Bearish Engulfing Pattern - Duration: 8:21 ... Film ini berisi Mapping, Entry dan Hasil Trading dengan Scalping menggunakan BEARISH ENGULFING STRATEGY pair AUDCHF untuk menyelesaikan CHALLENGE 100 dari INFINTY. Cara kaut RATUS RATUS PIPS dengan Teknik Bullish atau Bearish Engulfing - Duration: 11:14. AiFX ... Belajar Forex Indonesia - 4 Cara ... Make a Living in 1 Hour a Day Trading the 3 Bar Play ... All about Trading in Forex Marked Bullish Engulfing" and "Bearish Engulfing Pattern Trading System _____ Downl... Bearish engulfing pattern is the opposite of the bullish engulfing pattern. it is also a two candle formation but it appears at the top of an up-trend. The rule is that the second, black candle ... Bearish Engulfing Candlestick Chart Pattern - Video & Chart Examples - Duration: 6 ... Part 1: 4 Hour Pin Bar Forex Strategy by Nial Fuller - Duration: 6:49. Nial Fuller 63,170 views. 6:49 . Forex ... NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. Bearish Engulfing Pattern is one of the easiest of candlestick reversal pattern to identify. It is bearish in nature and appears at the end of an uptrend with two candlesticks. Today in Episode 100, I will show you how to identify a Bearish Engulfing Candle pattern in live market conditions, where to enter, where to place your stop loss and how to exit profitably ... bearish engulfing pattern is a two bar candlestick pattern. 1st candle is a bull candle and 2nd candle is a bear candle. The 2nd candle is of same size or bigger than the 1st bull candle. You will ...