1.2 KiB
1.2 KiB
Engulfing
A simple swing trading strategy based on the engulfing candle pattern.
It was inspired by the following video:
Very similar also to the Bearish Engulfing strategy.
Rules
- 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.
- If the asset (e.g., SPY) is above its 200-day moving average, enter a long trade.
- If below the 200-day moving average, enter a short trade.
- 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).
Parameters
Long-Term Trend Period: The period of the long-term trend as measured using a simple moving average. (Default: 200)
Backtest Results
SPY
