The outside bar foreign exchange trading strategy is a simple and easy trading technique that identifies the pattern set up. The outside candlestick has its shadows engulf the candlestick before it. It is also well known as the bearish engulfing or bullish engulfing bar pattern.
Here is how the bullish outside candlestick pattern is:


Here is how a bearish outside candlestick pattern is:



  1. Highly recommend four hours and daily time frame for utilizing this strategy.
  2. All currency pairs work perfect with this technique.
  3. None of the forex indicators is required while trading with this technique.

Exchanging Rules

1. Position a purchase stop order outside candlestick and an auction order if bearish outside candlestick two to five pips higher up the high (if bullish outside candlestick) and two to five pips beneath the low (if bearish outside candlestick).

2. Then position stop-loss in the same way on the opposite side, two to five far away from the low if it is a purchase stop order and two to five pips higher up the high if it is an auction order.

3. Your take-gain aim, you have certain alternatives: aim prior swing high points (if it is a purchase order), or prior swing low points if it is an auction order or three times your initial risk. For instance, if you had risked 50 pips at the beginning, then you should establish your take-gain aim at a price where once achieved, will provide you one hundred and fifty pips gain (three times your risk).

4. Exchange management: one of the most excellent forex trading management is to utilize trail stop from the back of the low if it is a purchase order and higher up if it is an auction order. You will call for stopped out when a bar gets out of the low of the prior bar (for a purchase order) or you call of stopped out when the high of the prior bar is crisscrossed for an auction order. If that is achieved, I highly recommend walking away with the gain you have achieved.



Danger-SignUtilize this strategy at your own risk. cannot be responsible for any losses associated with using any strategy presented on the site. It’s not recommended to utilize this strategy on the real account without testing it on demo first.



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Mike N
Mike N

Financial Trading Systems Design Expert

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