I have a engulfing day trade system that I use and you can see details from my prier posts. This weekly engulfing candle has caught my eye and could be a possible trade. Normally would only use this on the daily charts because entering a trade from a higher time frame can be sloppy and inefficient. It also may take longer as a normal day trade is 1-4 days before profit or stop out where this may be weeks. Entry should be what ever set up or trigger you use on a lower time frame but the weekly chart targets shown could be used as a guide.
The engulfing strategy is 1 to 1 risk reward so requires more winning trades than losing to be profitable. Every trade I take is 2% risk of my account size. (This can be difficult if your broker mas min contract size orders) A win is 2% a loss is 2%. I've found this to be the most profitable way to trade a fixed system. It balances the fear and greed of being stopped out only because you where to close or missed profit because you tried to let in run. No trade is a shore thing so consistency pays off in the long run.
Refer to chart analyst but my general view is that the current rally maybe exhausted and due a small tradable pull back. There are similarities in this rally as what occurred a few months ago.
-The extension price is from the 50ma could suggest a reversion to the mean.
-The fib extension from the break out in price action.
-The engulfing candle, this weeks selling wiped out last weeks buying
I also follow Carl_Ekstroem currency strength analyst. USD scores -2 and JPY scores + 3 which is in favour for a short on this pair.
The engulfing strategy is 1 to 1 risk reward so requires more winning trades than losing to be profitable. Every trade I take is 2% risk of my account size. (This can be difficult if your broker mas min contract size orders) A win is 2% a loss is 2%. I've found this to be the most profitable way to trade a fixed system. It balances the fear and greed of being stopped out only because you where to close or missed profit because you tried to let in run. No trade is a shore thing so consistency pays off in the long run.
Refer to chart analyst but my general view is that the current rally maybe exhausted and due a small tradable pull back. There are similarities in this rally as what occurred a few months ago.
-The extension price is from the 50ma could suggest a reversion to the mean.
-The fib extension from the break out in price action.
-The engulfing candle, this weeks selling wiped out last weeks buying
I also follow Carl_Ekstroem currency strength analyst. USD scores -2 and JPY scores + 3 which is in favour for a short on this pair.
