Hi Eddie,
Are you still trading as you explained here 3.5 years ago, using the engulfing candles on the daily charts.
I have been doing a lot of back testing myself which showed that these candles are quite rare on the daily charts (maybe 2 -5 signals per year per pair), the most reliable time frame I have found is the 60min.
Which pairs do you trade?

Of course, there are guarantees in trading. Otherwise, I could not earn money consistently…
You just have to find the good system 😉

Thanks for the input. There are no guarantees in trading 🙂

Trading the Weekly engulfing candle is of course profitable. You can ask to Colin Jessup and you’ll see 😉
But the engulfing bar is just the pattern to enter the market. You have to consider the context of the price action (S/R levels, trend, …) if you want high-probability setups. I can guarantee you that it is profitable to trade it on W1, D1 and even H4 (with good context visualization) timeframes, I backtested successfully it since 2000 and it’s the basis of my trading system…

Hey Eddie,

Thanks for stopping by and the ideas! I’ll certainly try that. Let you know how it goes.

Yeah, unfortunately most of us have to go through a process before we finally discover what works for us. No shortcuts 🙂

Cheers,
Hugh

Will do Abner.

Cool!

Hi Nigel,

Thanks for the input!

Test it and let me know what you find. I haven’t tested it yet 🙂

Clay! Thanks for the input.

Yeah, I had the same thought with a 25 EMA to filter signals. Didn’t work so well.

The trouble with weekly candles is there isn’t really much data and you kind of end up memorizing most of the setups. Daily or 4H would be a more reliable test (but a bitch to write a blog post for 🙂 )

So far, stacking on the first two candles after the initial signal seems to be really profitable. Also, it looks like there would need to be two accounts to trade the longs and shorts at the same time.

Thanks again and I’ll have more soon…

Cheers,
Hugh

Hi Malen,

Thanks for the input! Really cool that you were there. I read about that incident. Yeah, I have it from a credible source that they have evolved their style to keep up with the times.

You bring up an interesting question of that is really trading or not. I think it is…

To me, trading is figuring out inefficiencies in the market and exploiting them for profit. That can be a chart pattern or a “flip.” The great part is that arbitrage-like opportunities like that tend to go away once people figure them out.

Just my opinion, of course…not trying to argue or anything.

Thanks for stopping by and I hope your trading is going well!

Cheers,
Hugh

Thanks Misael! Yeah, not sure how a trading system will actually play out, but this is a good start.