30 lines
1.2 KiB
Markdown
30 lines
1.2 KiB
Markdown
# Engulfing
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A simple swing trading strategy based on the engulfing candle pattern.
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It was inspired by the following video:
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[](https://www.youtube.com/watch?v=J6VRMhDnVrM)
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Very similar also to the [Bearish Engulfing strategy](https://moshferatu.dev/moshferatu/ninjatrader/src/branch/main/strategies/bearish-engulfing).
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## Rules
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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.
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2. If the asset (e.g., SPY) is above its 200-day moving average, enter a long trade.
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3. If below the 200-day moving average, enter a short trade.
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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).
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## Parameters
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**Long-Term Trend Period**: The period of the long-term trend as measured using a simple moving average. (Default: 200)
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## Backtest Results
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### SPY
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