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

Sharing With You One Of My Profitable Forex Trading Strategy: 4 Hour Time Frame

Since this is my first ever post here in my blog, I want to share to all of you readers one of my favorite FOREX TRADING SET UP and is at the top of my FOREX STRATEGY THAT GIVES ME HIGH RETURNS, most of the time this occurs in the 4 hour time frame. 

In this particular trade i'm gonna show you, the price in this FOREX PAIR is making an UP TREND MOVE, creating a series of higher highs and higher lows. Actually, this trade is simultaneous with the  GBPAUD forex long trade in my latest  previous video which you can watch here: Clear Set Up For The Head&Shoulder Pattern

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The bullish signal here is very strong and here are the 3 confirmation that made me took the trade:

• First candles which I highlighted in the screen shot is a candle that breaks the resistance and followed by a bullish pin bar.

• Second is the bullish engulfing candle that broke again the resistance as the price tried to go lower.

• Thirdly and the final reason why I decide to take the trade was this very clear bullish pin bar formed as it tries to go lower back to the broken resistance that now acted as support.

 

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Planning stage for the entry point, stop loss and profit target through reading the FOREX PAIR PRICE CHART

• Entry point - After finally seeing that final signal to trade which is that bullish pin bar, I waited for a little bit of pullback before I took my entry. For the sole reason of maximizing my RISK TO REWARD RATIO.

• Stop Loss- My only basis for deciding where should I put my stop loss is that it should be lower or below the previous signal candles which is the bullish engulfing and the pin bar.

• Profit Target - Now, my profit target was also based on the price chart. All the reason here is based on TECHNICAL ANALYSIS and READING THE PRICE ACTION of the market pair.  I look to the left and looked for obvious areas where the price previously consolidated, previous support that been broken which may act as resistance. As you can see in the screenshot below I found one and its there I set my profit target.

  

 

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As what I've always heard from famous people "Patience Is A Virtue". The best time to walk away from the chart is now. Trust me!

Since our trade was already set, all we've got to do now is to wait and just let the market do its thing. Since the start of my trading career, I could say that this is the hardest part. I believe the FOREX TRADER'S PSYCHOLOGY AND DISCIPLINE plays a very big role if you want to become a PROFITABLE FOREX TRADER. 

I had a lot of frustration and stressful time because of watching how the market move after setting my trade. I made plenty of mistakes and wrong decisions which I regret because I keep on controlling the market and not trusting my FOREX TRADING PLAN. I wasted my capital and blown several accounts because of this UNWANTED EMOTION that I always felt when I watch how my trade is doing. 

I know you probably heard this a lot of time from other successful famous traders, not because its the only thing they could suggest but because I believe its the best way to ELIMINATE YOUR DOUBTS AND FULLY TRUST YOUR TRADING PLAN. So walk away and stop interfering with the market's movement because you can't control it, you can only control yourself. Just set the trade and forget it!

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In conclusion: After forming 5 candles, 20 hours of waiting...

  

 

 20 hours later, the profit target was filled. I gained almost 4% of my capital in this trading account that I used. I could have let the position run but based on experience, once my profit target was set I rarely interfere with it. Also, there is no need to feel FOMO ( Fear Of Missing Out ) because there's plenty of trade set up and opportunity in the FOREX MARKET like this which occurs at least twice a week. The only thing we have to do is to look for it. 

If you want to see the LIVE VIDEO when I took this long trade just CLICK HERE!

If you are still reading up until this point it only means to me that you are really keen on learning on HOW TO BECOME A PROFITABLE FOREX TRADER. If you interested, here in my YouTube channel I post my WINNING TRADES with the details on what strategy I used.

Best Of Luck To You My Friend! And I'll See You In My Next Post..

YouTube Channel : https://bit.ly/2GwaRQE