Engulfing (Bullish or Bearish)- on any time frame, but like most things in Forex higher time frames works better and are more profitable too.
Example chart is hourly of ChfCad, which moved great on Friday.
Rules: Chart bullish engulfing ( can be used for bearish engulfing too)
1) Look for small bearish candlestick
2) Look for body of next bullish candlestick to engulf (yes, bottom of this candlestick can be same as close of 1st candle)- top closes above 1st candle.
3) Confirm time, which is New York session open (great)
4) Place buy market order on 3rd candle, after bullish engulfing
5) Place stop loss 20 to 25 pips away from entry related to using hourly time frame to do trade from
6) New 4 hour candle starts at 6 am to 10 am, PST/CA time- so I would let this trade run to at least 1:1.5 to 1:2.0 Risk Reward set up. seen on chart.
7) Always, risk management, remember: Pair, Price, Session and Time. I used only hourly, 4 hour and daily to trade from. Less noise & High profits.
Example chart is hourly of ChfCad, which moved great on Friday.
Rules: Chart bullish engulfing ( can be used for bearish engulfing too)
1) Look for small bearish candlestick
2) Look for body of next bullish candlestick to engulf (yes, bottom of this candlestick can be same as close of 1st candle)- top closes above 1st candle.
3) Confirm time, which is New York session open (great)
4) Place buy market order on 3rd candle, after bullish engulfing
5) Place stop loss 20 to 25 pips away from entry related to using hourly time frame to do trade from
6) New 4 hour candle starts at 6 am to 10 am, PST/CA time- so I would let this trade run to at least 1:1.5 to 1:2.0 Risk Reward set up. seen on chart.
7) Always, risk management, remember: Pair, Price, Session and Time. I used only hourly, 4 hour and daily to trade from. Less noise & High profits.