The Omar Agag EBP Strategy, Swing Trading Variation, is built around a single, repeatable candle pattern: the Engulfing Bar Play, EBP. The premise is straightforward: when a higher timeframe candle sweeps the high or low of the previous candle and then closes decisively beyond its body in the opposite direction, it signals a potential continuation or reversal with a clear risk structure. The strategy is designed for swing traders operating on the 4-hour chart and above, across gold, forex pairs, and indices.

What makes this approach distinctive is its use of Fibonacci retracement levels to determine both the entry point and the stop loss, scaled to how decisively the engulfing candle closes. A strong close, within 15% of the candle’s high or low, warrants a tighter entry at the 25% retracement. A weaker, more indecisive close calls for a deeper entry at the 50% level. In both cases, the target is a fixed 2R, with stops moved to breakeven once a new higher high or lower low is confirmed on the trading timeframe.

How the strategy works

Key concepts

Entry triggers

After a valid EBP candle forms on the 4-hour chart or above, the entry method is determined by the strength of the candle’s close.

Entry Trigger #1: Strong close

• EBP candle closes within 15% of its high or low.
• Set limit order at 25% retracement.
• Stop loss at 75% retracement.
• Target 2R.

Entry Trigger #2: Indecisive close

• EBP candle closes more than 15% from its high or low.
• Set limit order at 50% retracement.
• Stop loss at the origin of the EBP candle.
• Target 2R.

If the EBP candle is very indecisive, closing with more than a 50% retracement, use a market entry for Entry Trigger #2 rather than a limit order.

Trade checklist

• A valid HTF EBP engulfing candle has formed, with the previous high or low swept and a close beyond the opposite candle body.
• Strong close, within 15%: limit entry at 25% retracement, stop loss at 75% retracement.
• Indecisive close, beyond 15%: limit entry at 50% retracement, stop loss at the origin of the EBP candle.
• Move stop to breakeven after a new higher high or lower low is created on the trading timeframe.
• Target 2R.

Do not enter a second trade on the same pair while one is already active, unless the stop has already been moved to breakeven. If any parameters are missing, trade quality is reduced. Aim to take only A+ setups.

Additional rules and optimizations

• Incorporate HTF Points of Interest, such as supply and demand zones, imbalances, and liquidity sweeps, to improve the probability of continuations or reversals.
• If highly confident in the draw on liquidity, trail runner positions beyond the initial 2R target.
• Consider combining this swing strategy with lower timeframe entry models to achieve larger R-multiples on the same setup.