Engulfing Candles Archives - FXMasterCourse

March 1, 2016 by Corvin Codirla 1 Comment

Bullish & Bearish Engulfing Bars (Part III)

This is the third article in the series on trading the Bullish and Bearish Engulfing candle stick patterns. Following on from Part I and Part II, we will look at trading the short signals for AUDUSD, EURUSD, GBPUSD, USDJPY, and USDCAD. Let’s recap the results for the long side: We used hourly rolling bars to […]

February 23, 2016 by Corvin Codirla Leave a Comment

Bullish & Bearish Engulfing Bars (Part II)

This is the second article in the series of trading the Bullish and Bearish Engulfing candle stick patterns. Following on from Part I, we will actually perform some backtests using the results we found in Part I. In Part I, we split up the analysis for long and short trades separately. Here we will keep […]

February 16, 2016 by Corvin Codirla 3 Comments

Bullish & Bearish Engulfing Bars (Part I)

Many people ask if there are any particular technical setups that I like to look at and what the best way to trade them is. My all-time favorite heavily involves Support and Resistance levels, and using these as breakout levels. The art lies in finding them and then managing trades appropriately. In this article we’ll […]

Following on in the series of Market Dynamics the NFPs presented a great opportunity to take a closer look at what happens during important news events. I’ve learned my lesson by now: don’t trade during news events. And this is especially true of stop orders in these situations. Price will just hop straight through. When it does the fill is awful, and the worst part, as happened on Friday: it reverts very quickly hitting any protective stops. The outcome? You book losses which could…

Market Reaction to NFPs on 8th January 2016

Equities Mean Reversion

Equities mean-reversion works right now. And as part of Building Consistently Profitable Trading Systems it forms a key component. In this article we’ll present the final version of the mean-reversion system to form part of the trading toolbox, and the final portfolio. It’s the Larry Connor’s RSI2 strategy. And it’s based on the two concepts we covered in Equities and Their Mean Reversion Habits:

Looking for a series of down days

Looking for reversion towards a short dated movi…

Equities Mean Reversion

This week’s article is more tongue in cheek: do natural phenomena affect the markets? What we’ll be particularly looking at are the full moon, new moon, and solar eclipses, especially since we had one on the 9^th March this year. Back in 2005 I wrote a similar article at Barclays Capital for the weekly quant newsletter we sent out to clients. It was a summer lull, and it seemed like a swell idea. The results back then indicated that it was the New Moon rather than the Full Moon that really imp…

Effect of Lunar Phases and Solar Eclipses on the Currency Markets

It’s useful to be able to add a trailing stop to your trades. Given I never got my head around the MT4 functionality I wrote this small EA, which does the job. Place it on top of the currency chart and give in the number of pips by which it should trail your trades. You need to put it on currency charts for which you have trades. So if you have USDJPY trades put the EA on an USDJPY chart. This EA will not trail stops for trades that have a non-zero magic number. So if you have trad…

MT4 Trailing Stop Expert Advisor

As discussed in the articles on Bullish and Bearish Engulfing Bars, this indicator highlights the bars, and allows you to implement those trading strategies. The only input is an offset as to where to put the arrows indicating the bars in pips. This is best placed on an hourly chart. The indicator will loot at the previous 8 bars, and check to see if the first group of four hourly bars engulfs the previous four hourly bars. This is then rolled over with every new hourly bar.

Bullish and Bearish Engulfing Bars