Looking For Shorts On Engulfs

AUDJPY - Short

AJ broke some key levels last week with some strong moves down. There are some clear green candles below which looks good for profit. If we get a retrace to some lower time frame supply and an engulf confirmation then we could have a short trade.

A29 image 1 AJ Short D1

AUDNZD - Short

AN has hit daily supply for a second time and has been falling. There's been an engulf and there's potential profit below so I'll be watching for confirmation of a short on the lower time frames.

A29 image 2 AN Short D1


GBPJPY - Short

Last week I mentioned a potential long trade on GJ and this week I'm looking for a short. Price has engulfed the daily demand and there's green candles below so I'm now looking for a short. If we see a retrace to lower time frame supply, there could be a few hundred pips on offer.

A29 image 2 GJ Short D1

Happy Trading.


  1. surinder on October 14, 2014 at 05:57

    Hi Joe,

    I have just come across your website, i have been trading S/D for a while now, i like your way of teaching this method, just wanted to know if i want trade the similar method, will this work using the H4, time frame, instead of the weekly to mark my S/D levels and the H1 for the momentum candles and then drop to a lower Time Frame level to look for fresh Levels of S/D, also do you mind if i post my charts and my trade setups for your analysis/suggestions

    • Joe Wright on October 19, 2014 at 21:43

      Hi Surinder, I cannot say how this might work for the H4 instead of a much higher time frame as I have not tired this approach. What I would say is that higher time frames are king which is why I prefer to start with the daily as the highest. With regards to the momentum candles, I think it’s best to focus on the levels rather than single candles as they tell more of a story. It’s best to demo any method first though. I don’t mind giving my opinion on analysis no. Drop me an email.

Leave a Comment

Want to improve your trading? | Download your free Traders Checklist


Learn To Read The Market

Your guide to consistent trading profits:
  • Identify high quality setups
  • Learn to read price action
  • Trade with confidence