No matter how good an engulfing setup looks like the entry still needs to be done on a 1/5 min bar chart to reduce risk
Nevertheless the Engulfing pattern can only be traded with the higher degree timeframe in mind, so drawing trendlines to remind you where to look for reversals or continuation is a must:
Only if price continues to trade below prior 30 min bar low after the engulfing setup a short entry is valid:
Also if a trend is already on the Engulfing entry allows you to enter with a controlled risk (=distance between prior close to prior open)
Looking at the S&P after 2 am its easy to tell if the FDAX will go or down up after 3 am:
If the 30 min bar closes above the prior bars open and closing price (ignoring the absolute highs) then a long entry is valid if price continues to trade above prior 30 min bar high.
If the 30 min bar closes below the prior bars open and closing price (ignoring the absolute lows) then a short entry is valid if price continues to trade below prior 30 min bar low.
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