A bullish engulfing pattern can be a powerful signal, especially when combined with the current trend; however, they are not bullet-proof.
- Investopedia (https://www.investopedia.com/terms/b/bullishengulfingpattern.asp)
So whats the difference in Dark Engulfing vs Engulfing Candles?
- We use ATR to ignore the candles that dont contribute much
- Candles are only marked if it shows Manipulative Behaviour
- Applicable to a wide variety of trading strategies
- I will be releasing Dark Liquidity in a few weeks which uses Dark Engulfing as the basis for the system. But Dark Engulfing is not meant to be a batteries included system in itself.
- It needs to be integrated into your strategy or you need to come up with one yourself
Consider Dark Engulfing to be a free version of my upcoming Dark Liquidity Indicator. (currently I am running some personal tests)
Dark Liquidity will be a paid product. This is how Dark Liquidity will look like:
Dark Liquidity will automatically calculate Lot size and even show you the money you will earn or lose at set points.
Dark Liquidity uses 1:3 RR which means your win rate can be as low as 25%
Example shows 2 winning trades + 1 Breakeven trade for Dark Liquidity.
- Risking 1% per trade that is a 6% gain from 3 trades.
- Risking 5% per trade thats a 30% gain from 3 trades
- You can define whatever risk percent your comfortable with from the options in order to get the right Lot Sizes
You will get Dark Engulfing for MT4