New article Price Action. Automating the Engulfing Pattern Trading Strategy has been published on mql5.com:
This article describes a process of creating an Expert Advisor for
MetaTrader 4 based on the Engulfing pattern, as well as the pattern
recognition principle, rules of setting pending orders and stop orders.
The results of testing and optimization are provided for your
All Forex traders come across the Price
Action at some point. This is
not a mere chart analysis technique but the entire system for defining
the possible future price movement direction. In this article, we will
analyze the Engulfing pattern and create an Expert Advisor which will
follow this pattern and make relevant trading decisions based on it.
We have previously examined the automated trading with Price Action patterns, namely the Inside Bar trading, in the article Price Action. Automating the Inside Bar Trading Strategy.
The Engulfing pattern is when the body
and shadows of a bar completely engulf the body and shadows of the
previous bar. There are two types of patterns available:
Fig. 1. Types of pattern shown on the chart
Author: Dmitry Iglakov