Reply To: Engulfing candle entry points

Welcome! Forums Forex Breakthrough Academy Forum Engulfing candle entry points Reply To: Engulfing candle entry points

Rich FittonRich Fitton

Hi Keith,

Great question – this is one that will be useful for all traders to be aware of.

Yes, if the market has already passed the entry point Metatrader won’t accept a STOP order (a buy stop has to above the market price and a sell stop has to be below it).

Here’s what you can do on the occasions when the market is trading right at the extreme of the engulfing candle as it comes to a close (i.e. where there’s a chance the entry price will be surpassed before you have chance to get your order in or if the market has already surpassed it)…

Use a MARKET ORDER (“instant execution” on MT4) to enter the trade immediately once you see the market trade at the entry price (don’t worry about getting your order filled a pip or two above the ideal entry price, remember we’re not trying to trade with surgical precision for just a few pips of profit – targeting those high reward:risk ratios on the trades ensures your approach stays robust).

Have a stop loss of say 20 pips already entered into the order ticket for your market order. It’s important to have some protection as soon as you are in the trade and you can take a moment to adjust it back to your desired stop loss location once you are holding the position. You can do the same with the take profit too – get one into the market and then adjust it to the accurate level once the urgency to actually enter your order has passed.

You can have all this prepared in advance of the candle closing so there is no time pressure at the actual point of entering the trade.

(I’ve attached an image of how it might look in MT4. At this point you’d be ready to hit ‘buy’ or ‘sell’ to get you straight into the trade.)

You can use the same practice to get you into trades where the stop order would fall beyond the broker’s threshold for accepting pending orders in that market (i.e. the 14 pip message you saw). If you needed to go away from the screen you could enter a stop entry order at the best available price (so you don’t miss the trade in the meantime) and go back to monitoring the market on your return.
In this case you’d either get into the trade with your market order or the market would move away from the entry price allowing you to place the pending stop order.

P.S. I edited out a big string of computer code that was inside your original post. Were you trying to include an attachment? If you’d still like me to see it can you try again using the ‘choose file’ button you’ll see below the typing space for you forum post. Many thanks.

You must be logged in to view attached files.