Entry Strategies - Candlestick Patterns

Entry Strategies - Candlestick Pattern

After completing the top-down analysis that we showed you in previous lesson, you can apply

below strategies to execute your trades.

A. Candle stick pattern entry

B. Fib level entry

C. Candle count entry

D. High probability set ups

A. Candlestick Pattern Entry

The below Candle stick patterns are used to find entry signal after top-down analysis as explain in

previous slides:

1. Engulfing pattern

• A bearish engulfing pattern is a candlestick chart pattern that forms when a small bull candlestick

(white one) is followed the next day by a large bull (black) candlestick, the body of which

completely overlaps or engulfs the body of the previous candlestick.

• The engulfing bearish candle if has a wick upside and no or very small wick downside, it is

supposed to be strong one

• If you don’t know about candlestick chart, please read here:

• Entry: If the structure belongs to h4, look for engulfing candlestick pattern on H1. Entry is 1 pip

below, in case of sell (bearish engulfing) and one pip above, in case of buy (bullish engulfing), of

the engulfing candle

• Stop loss is placed 1 pip above the high of the engulfing candle in case of sell entry, 1 pip below

the low of the engulfing candle in case of buy entry.

2. Pin bar pattern

• The pin bar is effectively comprised of two segments, the “wick” portion and the “body” of the

candlestick. Ideally, we want the body to be small relative to the size of the wick by almost 3

times.

• The second requirement is the height of the whole of the pin bar candlestick should be more than

the height of its previous candle.

• Entry: if the structure belongs to H4 look for pin bar in the same time. Entry is 1 pip below, in case

of sell (bearish pin bar) and one pip above, in case of buy (bullish pin bar), of the pin bar candle

• Stop loss is placed 1 pip above the high of the pin bar candle in case of sell entry, 1 pip below the

low of the pin bar candle in case of buy entry.

Images