GBPCAD - Bullish Engulfing Setup (Daily)
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.
Comment:
1 hour time frame accumulation point of view
Comment:
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!
Comment:
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
