day trade short engulfing strategy entry

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see prior posts for examples. I see this as a counter trend move. profit projection finishes before larger trend line . A long entry would be taken if the flag drawn see's a break out. But currently looking for a long down at the 70cent level and will trade the counter move to this level and look for reversal.
looking like a strong reversal at the trend line as thought possible. currently engulfing last weeks price range. reversal all so happened to play out at the 61.8 fib retracement of the last leg up. Will post a trade if the long term trend confirms with a new high past 73.
now will wait and see if reversal develops.
first position hit target and closed. 3rd engulfing setting up.
Why not sell the retracement after the engulfing candle?
Olu IvanLabrie
It is a risk tolerance thing. They dont always retrace
If you watch 4h/1h you can tell. (If trading daily)
Olu, risk to reward always must be evaluated, as you say nothing happens always. If it did trading would be easy.
tst IvanLabrie
Hi, I am short 2 positions as shown. 2% of account risked for 2% gain. that is just my day trade stagey . longer term im looking for a long entry. see below.
+1 Reply
I like equal risk to reward on the engulfing pattern as well, just that I trade to trade it from a retrace.
tst IvanLabrie
Yeah trading equal or with larger stops was the point where i crossed over to becoming profitable. management of account risk is far better than trying to double it with every trade by having tight stops and large targets. Please add a comment… Positive feedback and constructive criticism are important to authors and the community.
+1 Reply
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