One of the main techniques for having a winning strategy is to find patterns in the past that are a huge probability to repeat in the future. So, there are lots of patterns but among the best known standards are the BULLISH ENGULFING CANDLE and the BEARISH ENGULFING CANDLE. In this article a practical approach is proposed in an automated jforex strategy using these two well-known patterns with a detailed explanation about the strategy code and the related results.
Following again my previous article in April, I chose 2 more patterns to present the code in JForex and study to what extent these patterns are profitable or not in forex. The chosen patterns were as follows:
BULLISH ENGULFING CANDLE: This pattern is characterised by a large white body engulfing a preceding smaller black body, which appears during a downtrend. The white body does not necessarily engulf the shadows of the black body candle, but totally engulfs the body itself. This is an important bottom reversal signal. Bullish engulfing candles indicate immense buying interest that swallows the range of the prior candlestick low and surpasses the candlestick highs. …