Engulfing (Outside Bar) & Harami (Inside Bar) Patterns
For your homework: find all engulfing, harami and pin bar setups on different Forex pairs on hourly time frames or higher.
Where did these patterns happen- Price and Time?
How could you have traded them? entry, stop loss and targets
What risk management would you use or lot size? What is a pip move worth with keeping trades 1% to 2% of your account.
These two patterns are very powerful, on all time frames- as usual higher time frames are more reliable. You would need to adjust your risk management the higher time frames you trade to generally- lower lot sizes and larger stop losses.
On example daily GBPJPY chart- these moves from both engulfing and Harami two candlestick pattern do not look like much movement, but yellow noted lines are 100 pips each.
How you set up entry, stop losses and targets is all up to you= but remember do not let emotions control you and let greed ruin profitable trades.
Where did these patterns happen- Price and Time?
How could you have traded them? entry, stop loss and targets
What risk management would you use or lot size? What is a pip move worth with keeping trades 1% to 2% of your account.
These two patterns are very powerful, on all time frames- as usual higher time frames are more reliable. You would need to adjust your risk management the higher time frames you trade to generally- lower lot sizes and larger stop losses.
On example daily GBPJPY chart- these moves from both engulfing and Harami two candlestick pattern do not look like much movement, but yellow noted lines are 100 pips each.
How you set up entry, stop losses and targets is all up to you= but remember do not let emotions control you and let greed ruin profitable trades.