10 Best Forex Engulfing Candle Chart Pattern indicator ...

Price Action Trading- The Greatest System.

When I first started trading, I used to add all indicators on my chart. MACD, RSI, super trend, ATR, ichimoku cloud, Bollinger Bands, everything!
My chart was pretty messy. I understood nothing and my analysis was pretty much just a gamble.
Nothing worked.
DISCLOSURE- I've written this article on another sub reddit, if you've already read it, you make skip this one and come back tomorrow.
Then I learned price action trading. And things started to change. It seemed difficult and unreliable at first.
There's a saying in my country. "Bhav Bhagwan Che" it means "Price Is GOD".
That holds true in the market.
Amos Every indicator you see is based on price. RSI uses open/close price and so does moving average. MACD uses price.
Price is what matters the most.
Everything depends on the price, and then the indicators send a signal.
Price Action trading is trading based on Candlestick patterns and support and resistance. You don't use any indicators (SMA sometimes), use plot trend lines and support and resistance zones, maybe Fibs or Pivot points.
It is not 100% successful, but the win rate is quite high if you know how to analyse it correctly.
How To Learn Price Action Trading?
YouTube channels- 1. Trading with Rayner Teo. 2. Adam Khoo. 3. The Chart Guys. 4. The Trading Channel (and some other channels including regional ones).
Books- 1. Technical Analysis Explained. 2. The trader's book of volume. 3. Trading price action trends. 4. Trading price action reversals. 5. Trading price actions ranges. 6. Naked forex. 7. Technical analysis of the financial markets.
I think this is enough information to help you get started.
Price Action trading includes a few parts.
  1. Candlestick patterns You'll have to be able to spot a bullish engulfing or a bearish engulfing pattern. Or a doji or a morning star.
  2. Chart Patterns. The flag, wedge, channels or triangles. These are often quite helpful in chart analysis without using indicators.
  3. Support or Resistance. I've seen people draw 15 lines of support and resistance, this just makes your chart messy and you don't know where the price will take a support.
You can also you the demand and supply zone concept if you're more comfortable with that.
  1. Volume. There's a quote "Boule precedes price". Volume analysis is a bit hard, but it's totally worth learning. Divergence is also a great concept.
  2. Multiple time frames. To confirm a trend or find the long term support or resistance, you can use a higher time frame. Plus, it is more reliable and divergence is way stronger on it.
You can conclude everything to make a powerful system. Like if there's a divergence (price up volume down) and there's a major resistance on some upper level and a double top is formed,
That's a very reliable strategy to go short. Combinations of various systems work very good imo.
Does this mean that indicators are useless?
No, I use moving averages and RSI quite frequently. Using price action and confirming it through indicators gives me a higher win rate.
"Bhav Bhagwan Che".
-Vikrant C.
submitted by Vikrantc2003 to Daytrading [link] [comments]

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]

Do candlestick patterns work on low time frames? (some of my observations)

Hi!
So, I am learning forex trading, it took me about half a year to find the way I want to trade and I finally discovered the huge potential of forex scalping. I'm trying to learn by using lots of stuff and see if they work or not. I spend most of my time on 1 minute chart and I noticed that price is vulnerable to:
- support and resistance lines (captain obvious here)
- chart patterns like double/triple top/low, head and shoulders etc.
- trend line breaks
- EMA 50
The last one was highly suprising for me because I'm price actions enthusiast and I try to avoid indicators. Price is very vunerable to EMA 50 even on low time frames.
But there is still a big problem when price is approaching to support/resistance zone and I need some additional confirmations to open a trade, so I'm looking for long wick candles, engulfing candles, a lot of rejections and even if I can clearly see them, there is a lot of situations when price moves in a completely unexpected direction. Sometimes I feel like candlestick patterns don't work on 1 minute chart and price is doing some "random" moves.
I look at previous hours/days quite often and when I see that there was a big move, I look at previous candles, even on higher time frames and I think "shit, there is no chance I could predict that".

Do you have similiar experiences?
submitted by Eksagnem to Daytrading [link] [comments]

Bullish Engulfing Pattern - Candlestick Price Action Trading Strategy Price Action Forex: Engulfing vs Big Shadow Candles - YouTube Price Action Trading: How to Trade an Engulfing Candlestick Pattern in Futures, Equities, Options Forex Trading With an Engulfing Candlestick Pattern Engulfing candlestick trading

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Bullish Engulfing Pattern - Candlestick Price Action Trading Strategy

http://nakedforexnow.com/ Naked Forex Trading: Several types of engulfing candles are explained in this session. Price Action Forex: Engulfing vs Big Shadow Candles - Duration: 44:39. ... An Incredibly Easy Strategy to Trade Price Action Using ENGULFING Candlestick Pattern - Duration: 10:09. The Secret ... Forex Trading With an Engulfing Candlestick Pattern - This episode of Forex club Indonesia shares a tutorial on how to trade forex or how to analyze forex using an engulfing candlestick pattern. Forex Price action trading strategy. There are many type of reversal candlestick pattern that we can find in forex chart such as pinbar, shooting start, morning start, hammer, but this Engulfing ... Price Action Trading: How to Trade an Engulfing Candlestick Pattern in Futures, Equities, Options basecamptrading. Loading... Unsubscribe from basecamptrading? Cancel Unsubscribe. Working ...

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