Bullish Engulfing at Daily Support (Pivot Low) - R Target (v6) — Strategy by kboyle89

By kboyle89

Performance Metrics

Description

1. What this strategy really is (in human terms)This strategy is not about predicting the market.It’s about waiting for proof that buyers are stepping in at a price where they already should.Think of it like this:“I only buy when price falls into a known ‘floor’ and buyers visibly take control.”That’s it.Everything in the script enforces that idea.2. The two ingredients (nothing else)Ingredient #1: Daily Support (the location)Support is an area where price previously fell and then reversed upward.In the script:Support is defined as the most recent confirmed daily swing lowA swing low means:Price went downStoppedThen went up enough to prove that buyers defended that levelThis matters because:You’re not guessing where support might beYou’re using a level where buyers already proved themselves“At support” doesn’t mean exactMarkets don’t bounce off perfect lines.So the script allows a small zone (the “support tolerance”):Example: 0.5% toleranceIf support is at 100Anywhere between ~99.5–100.5 countsThis prevents missing good trades just because price was off by a few ticks.Ingredient #2: Bullish Engulfing Candle (the trigger)This is the confirmation.A bullish engulfing candle means:Sellers were in controlBuyers stepped in hard enough to fully overpower themThe bullish candle’s body “swallows” the previous candlePsychologically, it says:“Sellers tried, failed, and buyers just took control.”That’s why this candle works only at support.A bullish engulfing in the middle of nowhere means nothing.3. Why daily timeframe mattersThe daily chart:Filters out noiseReflects decisions made by institutions, not random scalpersProduces fewer but higher-quality signalsThat’s why:The script uses daily dataYou typically get very few trades per monthMost days: no tradeThat “boredom” is the edge.4. When a trade is taken (exact conditions)A trade happens only if ALL are true:Price drops into a recent daily support zoneA bullish engulfing candle forms on the daily chartRisk is clearly defined (entry, stop, target)If any one is missing → no trade5. How risk is controlled (this is crucial)The stop loss (where you admit you’re wrong)The stop is placed:Below the support levelOr below the low of the engulfing candleWith a small ATR buffer so normal noise doesn’t stop you outMeaning:“If price breaks below this area, buyers were wrong. I’m out.”No hoping. No moving stops. No exceptions.Position sizing (why this strategy survives losing streaks)Each trade risks a fixed % of your account (default 1%).So:Big stop = smaller positionSmall stop = larger positionThis keeps every trade equal in risk, not equal in size.That’s professional behavior.6. The take-profit logic (why 2.8R matters)Instead of guessing targets:The strategy uses a multiple of risk (R)Example:Risk = $1Target = $2.80You can lose many times and still come out ahead.This is why:Win rate ≈ 60% is more than enoughEven 40–45% could still work if discipline is perfect7. Why patience is the real edge (not the pattern)The bullish engulfing is common.Bullish engulfing at daily support is rare.Most people fail because they:Trade engulfings everywhereIgnore locationLower standards when boredAdd “just one more indicator”Your edge is:Saying no 95% of the timeTaking only trades that look obvious after they work8. How to use this strategy effectively (rules to follow)Rule 1: Only take “clean” setupsSkip trades when:Support is messy or unclearPrice is chopping sidewaysThe engulfing candle is tinyThe market is news-chaotic (earnings, FOMC, etc.)If you have to convince yourself, skip it.Rule 2: One trade at a timeThis strategy works best when:You’re not stacked in multiple correlated tradesYou treat each setup like it mattersQuality > quantity.Rule 3: Journal screenshots, not just numbersAfter each trade, save:Daily chart screenshotSupport level markedEntry / stop / targetAfter 50–100 trades, patterns jump out:Best tolerance %Best stop bufferMarkets that behave well vs poorlyThat’s how the original trader refined it.Rule 4: Expect boredom and drawdownsYou will have:Weeks with zero tradesClusters of lossesLong flat periodsThat’s normal.If you “fix” it by adding more trades:You destroy the edge.9. Who this strategy is perfect forThis fits you if:You don’t want screen addictionYou prefer process over excitementYou’re okay being wrong oftenYou want something you can execute for yearsIt is not for:ScalpersIndicator collectorsPeople who need action every day10. The mindset shift (the real lesson of that story)The money didn’t come from bullish engulfings.It came from:Defining one repeatable behaviorRemoving everything elseTrusting math + patienceDoing nothing most of the timeIf you want, next we can:Walk through real example trades bar-by-barOptimize settings for a specific market you tradeAdd filters that increase quality without adding complexity

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