GBPCAD has formed a significant bullish engulfing on the daily time frame near a previous support level.
The engulfing candle engulfed 4 previous candles and closed Friday.
Clear accumulation reversal visible on the 1 hour time frame.
Expecting price to bounce off of the 50% retracement level.
SL set at engulfing candle body low.
TP set at 3X risk.
The engulfing candle engulfed 4 previous candles and closed Friday.
Clear accumulation reversal visible on the 1 hour time frame.
Expecting price to bounce off of the 50% retracement level.
SL set at engulfing candle body low.
TP set at 3X risk.
Note
1 hour time frame accumulation point of viewNote
Daily setup running nicely so far. Took a 1H setup after a 1H bullish engulfing candle Wednesday at 8am CST. This trade worked out PERFECTLY! Sniper entry!Note
50% entry is key for engulfing candle strategies in order to get a 3R return easily. Price does not always return to the 50% retracement level but in my experience it does about 80% of the time which is more than enough profit when using 1:3 risk to reward. When entering at the top of the engulfing candle it is much harder to pull 1:3 risk to reward trades consistently because it requires too big of a stop loss. With a 50% entry, a 1:3 risk to reward is easily achievable.Trade closed: stop reached
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.