Bullish Pin Bar and Bullish Engulfing Candle Combination Strategy : Live Trade Explanation

Way back 2 to 3 years ago when I started FOREX TRADING, I was jumping from one strategy to another. I realized that was a very big mistake which eventually blown several of my accounts. Now I have finally found a strategy which fits to my personality. This FOREX TRADING STRATEGY is mainly based on technical analysis. The set up for this strategy usually occurs in the 4 hour time frame that's why most of the time I trade it there. It is composed of a combination of engulfing candle followed by a pin bar that are formed on a known SUPPORT OR RESISTANCE ZONE. 

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Lets take a look at this FOREX Trade I had below:

 

 

You can click on the picture to zoom it.

As you can see, this set up happened in a broken resistance area that at that time acted as a support already. The support area here is plotted in a red horizontal line. As the price bounces back from the support it formed a bullish pin bar. Again as it tries to go down twice to that support area it was rejected and formed a bullish engulfing candle.

That for me is the signal and indication that the price would probably go up already.

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Planning For The Risk To Reward Ratio of the Trade

 

If this image appears small to your screen just click it to zoom in.

So whats next? Now that we have found the set up we need to plan now the risk to reward ratio of our trade. In here I choose to risk 1 to win 3. That's my risk to reward ratio in this trade. I based it where? Well if you look at the chart, you can see that in that area where my profit target is located is where the previous price tried to consolidate. In my own opinion and understanding the price now would try to retest that area of resistance if not break it.

So the final set up for the trade looks like this with the 1:3 risk to reward ratio.

 

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Trade Manifestation Time: Approximately 16 Hours of Waiting and Profit Target Was Hit!

 

 And just like that! 

Gained 3 percent of my capital account in this trade. It was particularly a no sweat trade. All I did was wait for the set up to be formed and when it does I just acted on it and walked away from the market.

You can watch this NZDCAD live trade here in my YouTube Channel: 

https://bit.ly/2RJNDLh