Last time on the series using Engulfing bar strategy I told you guys that it works...
I placed a trade on USDJPY daily chart on 15/06/2017.
(a) The engulfing bar engulfed more than two candlesticks.
b) one of the engulfed candles had it's high and low engulfed by the engulfing candlestick.Stochastic crossed over and heading up.
The Bollinger band lower band was broken by the wicks.
Trading strategy :
I entered at the close of the engulfing bar. Placed my stop loss at the low of the engulfing bar and my take profit was set as 1:1.
Guess what guys, it was a it's in the money at the moment.