Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

Trading Index Futures

Reply
fortknox
New Contributor
When trading using the Engulfing Candle method, assume one enters a trade based on the appropriate candle and confirmation signals. Two or three candles later, another perfect engulfing candle emerges and confirms but in the opposite direction. What actions are most appropriate to this situation?
0 Kudos
12 REPLIES 12
janne
Frequent Contributor
You can't rely on one indicator only for a trade, often it is too misleading. That's why thre are so many of other indictors, you look for confirmation from the other sources as well. What are moving averages doing, macd, resi/stochi etc. Read on before committing a financial suicide.
0 Kudos
SimonPB
Valued Contributor
if I get a opposite signal in the SAME system, I reverse.

As for needing more then just a candle .. not at all, when I use engulfing I also use 7 and 21 SMA to give direction and only trade in the direction - but that's all. Further I also trade ALSI using just, bid/offer/last/volume and 15 minute candle - no TA at all.
0 Kudos
Not applicable
Hi Simon.Just putting my head in the door for a quick question.I plotted what you say( I like it.It's easy,relaxed.)...and does that mean you wait for a reversal after the engulfing Candle and then enter ? And...do you rollover to the next day, if 7 stays above 21 ?
0 Kudos
SimonPB
Valued Contributor
I don't hold over night .. always exit at 5pm if still in a trade .. and if I get a reverse signa I switch immediately ..
0 Kudos
Not applicable
Simon are u still using a trailing stop of 50?
0 Kudos
Not applicable
Can someone share the system
0 Kudos
SimonPB
Valued Contributor
on engulfing candle .. yes ..
0 Kudos
Not applicable
Simon would u also trade a small ingulving candle,like a 10 point engulved by a 20 point
0 Kudos
Wino
Super Contributor
Problem though is that SMA's on easy trader do not carry over from the previous day. To get a 7, never mind the 21, period on a 15 min chart, one has to wait till midday or later. On a 5 min chart it only shows at about 10h30. So how does one sense the trend without this crucial info?
0 Kudos
SimonPB
Valued Contributor
bets = yes
wino = yip, it is a bug that renders te system untradable on ET until fixed ..
0 Kudos
Not applicable
Hallo Simon, which charting platform do you use?
0 Kudos
Ninja
Super Contributor
Not this one......
0 Kudos