Good afternoon gold gang! I thought i would jump on here with an educational piece on how i trade using engulfing candles along with my algo levels
Whenever you get a big push in the markets, this may be a news item or simply a market open, we normally see a candle being "engulfed" .. now this means that the candle closed bigger than the previous .. imagine it over shadowing.
When this happens, price likes to come back to collect orders from this level at some point in the future. Check the levels marked on my charts with a white box.
The best englufing levels for me, occur at my algo levels. Observe the chart and see what i mean. Very powerful.
I simply mark the level and await price to come back before making the decision to long or short it (based on the lower time frame confirmation)
My algo levels are very powerful and are a constant draw on price as you can see .. they are not random and are always the same distance apart .. just look at the respect they get.
Your homework is to go back on to the chart and mark all the engulfing candles you find on the 1 hour and above timeframe. See for your self how many times price comes back
catch you this evening for the outlook!!
follow along for more educational posts
tommy
Whenever you get a big push in the markets, this may be a news item or simply a market open, we normally see a candle being "engulfed" .. now this means that the candle closed bigger than the previous .. imagine it over shadowing.
When this happens, price likes to come back to collect orders from this level at some point in the future. Check the levels marked on my charts with a white box.
The best englufing levels for me, occur at my algo levels. Observe the chart and see what i mean. Very powerful.
I simply mark the level and await price to come back before making the decision to long or short it (based on the lower time frame confirmation)
My algo levels are very powerful and are a constant draw on price as you can see .. they are not random and are always the same distance apart .. just look at the respect they get.
Your homework is to go back on to the chart and mark all the engulfing candles you find on the 1 hour and above timeframe. See for your self how many times price comes back
catch you this evening for the outlook!!
follow along for more educational posts
tommy