I've been sitting here for the third evening now thinking about one topic — the engulfing strategy for binary options. On the chart it all seems clear: the candle takes out the previous one, the entry looks logical, but in practice I get either decent results or complete randomness. Especially on lower timeframes — one impulse and that's it, the picture changes completely.
I tried looking only at strong zones and filtering by trend, but I still can't figure out where this setup works well and where it's just noise. Maybe I'm simply entering too late or using the wrong candles. If anyone actually trades this approach, tell me: do you take it mostly with the trend, or are reversals also fine? And I'm also curious, do you wait for confirmation after the engulfing candle or enter right away?
I tried looking only at strong zones and filtering by trend, but I still can't figure out where this setup works well and where it's just noise. Maybe I'm simply entering too late or using the wrong candles. If anyone actually trades this approach, tell me: do you take it mostly with the trend, or are reversals also fine? And I'm also curious, do you wait for confirmation after the engulfing candle or enter right away?