From 5da661098040fed1ad7ac19d802a2f1b5363b7cf Mon Sep 17 00:00:00 2001 From: moshferatu Date: Wed, 18 Dec 2024 08:33:14 -0800 Subject: [PATCH] Add rules to Engulfing strategy documentation --- strategies/engulfing/README.md | 7 +++++++ 1 file changed, 7 insertions(+) diff --git a/strategies/engulfing/README.md b/strategies/engulfing/README.md index 112b80a..24679a1 100644 --- a/strategies/engulfing/README.md +++ b/strategies/engulfing/README.md @@ -4,4 +4,11 @@ A simple swing trading strategy based on the engulfing candle pattern. Very similar to the [Bearish Engulfing strategy](https://moshferatu.dev/moshferatu/ninjatrader/src/branch/main/strategies/bearish-engulfing). +## Rules + +1. Define an engulfing candle as one where the high is higher than the previous candle's high and the close is lower than the previous candle's low. +2. If the asset (e.g., SPY) is above its 200-day moving average, enter a long trade. +3. If below the 200-day moving average, enter a short trade. +4. Exit the trade following any close in profit or when the close is higher than the previous high (for longs) or lower than the previous low (for shorts). + --- \ No newline at end of file