For engulfing, the opening and closing should be close to highest and lowest price.
For pin, the tail should be around 3 times longer than its body. Regarding its Stop Loss, set it around 3/4 of the tail.
From the 'Trading in the Zone' book
Compare :
Person with very good analysis skill and knowledge, but poor control over emotions.
Person with basic and amateur trading skills, but good emotional control and stability.
The latter is better.
Bad memory is like an energy.
Like if you got bitten by a dog before, it will trigger the energy in your brain if you meet one in future.
Use this same principle in trading.
You lost before, and it will sometimes be triggered.
But it is only an energy, and don't let it undermine you strategy.
The whole book is saying for trading, it is all about managing yourself.
You can do well with just any normal strategy.
Many people make the mistake of looking for other strategies when they lose.
Or studying more to try to win.
Actually, it is a lot about being able to handle yourself.
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