Candlestick Engulfing bar Inside Strategy Setup
Hello Mr. Long,
Please can you tell is this trade a strategy #1 setup?
Engulfing bar strategy
There are some engulfing bar indicator ea but this strategy important part is “color”
engulfing bar pattern
Inside bar color white (bull)
Inside previous bar color black (bear)
Sell next open
Target, stop-loss close price
You can use this strategy engulfing bar Forex pairs.
Questions about Engulfing Bars
Engulfing bars are very common bars used in price action trading.
Before the beginners actually start trading in price action method, they need to gain knowledge about all the important things of this method.
Engulfing bar is one of these important subjects.
The engulfing bar formation consists of at least two candles, where the second candle completely engulfs the previous one.
The signal that the engulfing bar formation provides is, depending on whether the second bar is bearish or bullish, either a reversal or a continuation.
Though many price action trader use this bars as a very common trading pattern, beginners have to face a lot of questions regarding it.
Some of the common questions are- What can’t be clear about engulfing bars?
Does the engulfing bar just barely engulf the previous one or not?
Is the signal more important when the second bar is much larger than the first one?
News releases will often cause wider candles without necessarily indicating a change in the overall dynamics of a trend.
Conversely, pre-news trading often brings lower volatility and, therefore, makes the occurrence of engulfing bars more likely.
How can anyone quantify the impact of such events?
There are numerous aspects the average traders do not factor into their trading and, therefore, get very
inconsistent and ever-changing results without knowing the reason why.
So, in the beginning these traders should learn all the things about the price action method.
Practice makes a man perfect and this is something price action traders do.
They observe the market closely to learn the method in their own ways and then actually start trading.
In many cases, expert traders are always learning through observing and they continue this learning process.
Trading learning period never ends as the market can always show different results.