4 hr - Weekly Engulfing candles? Does this count as over trading?

Hey everyone! Hope everyone had a great holiday!
(Or normal chill day Lmao)

I’ve been researching Engulfing candles quite a bit lately and was curious about their accuracy with higher time frames.
There have been quite a bit of statements about how using Price action on higher time frames like the Daily and Weekly has better odds compared to lower time frames. (I definitely have one trade going that’s weekly based, hahaha)

Now is it because it decreases “Noise” in the market, or because there’s less trades, or perhaps the idea that it just has a better probability? (Or all the above lol)
I’ve also read that people like to trade on the 4h - daily because there’s more signals with better risk to reward, but the side effect is slightly less accuracy. Is this a true statement?

So as someone that only has a couple months playing with these time frames along with price action. I was wondering how everyone’s experience with this material is like from actual individuals?

I’ve combined the engulfing candle with support and resistance, included pin bars as a good reversal bar, and I like to use bollinger bands.

Now for my question about over-trading:
If I were to find a main pair let’s say the AUD/USD Long for example, then find several AUD pairs like AUD/CAD, AUD/CHF all showing the same signals, would taking all those trade pairs count as stacking multiple 2% risk trades into 8% sense they’re all AUD related?
(Common sense is telling me “YES it is because the AUD is on the MOVE”, but I wanted to be sure) :slight_smile:


There isn’t a universal answer to this question as afar as I know and it troubles me and all of us at times. Its fine to have a 2% maximum risk on a market but what about taking 10 parallel trades with 2% risk on each and they’re all correlated?

I find its best sometimes to enter a raft of entry orders across a currency series, say AUD-based. Let the first one or two trigger and then cancel the other 3. Once one of the running trades makes break-even, re-set another entry order. And so on. This way your risk to capital never exceeds the 2 x 2% limit you originally set.

But you have to decide are you going to protect capital or protect unrealised profits, they are different money and need different approaches.

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Ahh, I see.

That’s an interesting way of doing things. I’ll try experimenting with that and see how it goes.

Also, thanks for the support Tommor!