Strategy draws from engulfing style candles and has been both back and forward tested. As with everything money management is key to consistent profitability. Watch for a candle in which the body engulfs the previous candle, also the wicks of the second candle also engulf the wicks of the previous. Entry for trades such as this are on the close of the engulfing candle, stops set a couple of pips below the wicks low and targets must be atleast 1:1 risk reward or based on previous structure.
To gain maximum benefit from these trades set a trailing stop on T1 to ensure you catch as much of the run as you can. As you can see our targets were set at 1:1 but a further target can be seen based on previous structure.
Happy trading !
To gain maximum benefit from these trades set a trailing stop on T1 to ensure you catch as much of the run as you can. As you can see our targets were set at 1:1 but a further target can be seen based on previous structure.
Happy trading !