Hi bythepound,Originally Posted by ;
there are two different kinds of engulfing pub patterns.
You need to see them using the price bar chart rather than the HA candles.
I emphasized both different BUEB/BEEB and BUOB/BEOB patterns on one of your charts.
Take note of those engulfing bars which are Outside Bars.
I understand many H4 swing traders utilize the TDI's MBL yellowish lineup as filter to trade. This means they will have fewer transactions than those who trade looking at Price Action and the use of current Support/Resistance to the two timeframes W1 and D1 with regard. I wouldn't trade against the timeframes W1 and D1 when the market is in narrow range. You must observe the swing top and swing low in the chart timeframe the preceding 2 ~ 3 months, and also knowing' OHLC.
Searching for engulfing pubs at key support/resistance is much better than simply using the PAC for installations. You may be in the market 1 to 2 pubs early than those.
I recall Huge E in his ancient trading times took sell transactions when the PA shut below the PAC High and buy trade when PA close above the PAC Low. Later on, he substituted the PAC High Low with his 5EMA price, Alter 3.
Concerning the Market Base Line, its default is interval 34, this means you are looking at the 34-period typical of the RSI data. How many H4 pubs are there in 1 week, if you are on trading that is H4? The short term momentum default is two bars vs 7 pubs (Green / Green), the number of pubs (period) would you need to compare the brief term momentum with?
In my D1 chart trading, I alter that MBL to span 20 (simple moving average). This means I consider the price momentum of the past 20 days. I compare the price momentum of the previous 3 days and also the previous 7 days along with the previous 20 days.
On the my Weekly analysis, I don't look at the TDI. More significant is that the Price Action found on the Weekly and Monthly to know the market type/conditions.
There's advantage in using the greater timeframe analysis or that which Dr Alexander Edler calls 'Triple Screen Trading System'. This is exactly what high probability trading is about.
Hope this helps.
Regards,