Bearish Engulfing Crack Strategy

[Robert H 455]

Check out the video in Members Area > Premium Resources: https://www.bearbulltraders.com/advanced-lesson-bearish-engulfing-crack-strategy/

Saw the setup twice today. Once on $BABA (semi-successful back to VWAP but just too choppy), and $MU (failed). 

I believe one factor that gives the move such downward momentum is that stops are being taken out on the 5-min chart (close of prior white candle), and 1-minute chart (loss of the 9 EMA).

I was actually on the opposite end of a Bearish Engulfing Crack once. Went long $BSX on an Opening Range Breakup and was stopped out during the flush.

[Abiel 475]

Great explanation Robert!

Today CHK showed a nice Bearish Engulfing Crack ...

 

[Abiel 475]

A failed Bearish Engulfing Crack... the price never broke the previous candlestick range and with VWAP, YY level & MAs below was going to be difficult to crack... 

 

 

[Aiman 86]

3 hours ago, Abiel said:

A failed Bearish Engulfing Crack... the price never broke the previous candlestick range and with VWAP, YY level & MAs below was going to be difficult to crack... 

 

 

I actually was waiting for a bearish ingulfing crack there, but I told my self that I better enter after it breaks the VWAP for a better entry, once it failed it at 9:45-10:00 especially that hammer candle I just went long and it was a good long!

[Robert H 455]

$MSFT was a good example of this strategy today. Marcel Andre called it!

[Robert H 455]

Not 100% Engulfing, still Cracked though

[techguy911 2]

I called FB yesterday (the 9th) too on chat, the 2nd 5 minute candle.  My best trade of the day.

[Robert H 455]

Took $TWTR on Bearish Engulfing Crack but was stopped out on first try. Went back in for second attempt and rode momentum to low of the day (LOD).

[Robert H 455]

Here's one from yesterday that failed to crack below the MA's. I managed to get out near break-even for a mere 0.05/share loss.

[Abiel 475]

Double Bearish Engulfing Crack?

 

 

[Robert H 455]

$IBM failed Bearish Engulfing Crack. Stopped out on first attempt. Caught the continuation crack toward LOD.

[Robert H 455]

I couldn't get filled on $EBAY due to SSR. Tried 3 times during the engulfing candle and subsequent one to no avail. Gave up after it dropped below 34.7. It went to the low of the day!

[Robert H 455]

$UAA had a decent drop after the Engulfing Candle.

Same with $TAL before it reversed back to VWAP.

[ejordan7 1]

Came here to post the $TAL trade as well. Was a good one! Right at the VWAP too for a super small risk.

[Robert H 455]

Great example on $MU this morning. Many people in the room caught the move to LOD and beyond.