NZCAD SHORT Retracement entry on Engulfing Candle.

2019-12-05 13:29:26

So I rarely use the retracement entry which is to enter at the 50 fib level of a certain candle stick pattern. Now I wanted to sell this pair for a few days seeing that it was reaching a zone that it had not hit since the mid summer so I was looking for shorts. Since I only trade the daily charts I did not see any candle stick patterns like the doji or pin bar to enter but I was seeing a loss of buyer momentum that kept me on watch. So today a bearish engulfing candle prints on the Daily. This is not just buyers taking profits, this is a strong seller presence. But being that if I went in on a short to the next level it would only provide me a 1:1 trade if that so with strong and long engulfing candles I use the retracement entry where I used the fib retracement tool on the candle and enter at the 50 fib level. For this I put the alarm to notify me when price did hit the 50 fib level and it did shortly so I entered and with the retracement entry you might not always get triggered but it does give you a better risk reward. I will be posting a video of this shortly so I am already in this trad and it's already in profit.