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Engulfing Candle

CANDLESTICK PATTERNS BASICS | Engulfing Candle 📚Hey traders, In this educational post, I want to discuss with you one of the most accurate REVERSAL candlestick patterns - the engulfing candle. On ETHUSD chart, I spotted for you bullish & bearish examples of this pattern. The logic behind this pattern is quite simple: ⭐️In a bullish trend, after a strong directional movement, the price reaches some important structure level. Growing steadily and forming a sequence of green bullish candles the price suddenly forms a strong bearish candle. What is particular about that candle is the fact that its total range (distance from the wick high to wick low) & body range (distance from body open to body close) exceed the ranges of a previous bullish candle. 🔻Such a candle we will call a bearish engulfing candle. Most of the time it signifies a strong spike in selling volumes and willingness of sellers to push. With a high probability, such a formation leads to a pullback or even a trend reversal.
by Mr_HaMza_
DAX Long Setup - Are The Bulls Back? I am looking at trading the DAX today on the 4-hour time frame. Yesterday, we saw a major drop from the top of the daily resistance level. Price dropped around 2.5%. As we are still trending upwards and making higher highs and higher lows, we are now looking for an opportunity to go long. I have been testing a new strategy involving Bolinger bands, a fib retracement which I use to find my entry, and a fib extension which I use to find my targets. This might be a great time to test it out in a live market. THE LONG SETUP I like to wait for the price to pierce the bottom of the Bollinger bands. Once I see that price has pierced it, I then look for some sort of reversal candle. Something like a DOJI candle. If I see this, I then wait for the next candle to be a bullish engulfing candle, confirming that bulls are indeed buying in this area. Once this 4-hour engulfing candle closes, I throw on the fib retracement tool from the bottom of the engulfing candle to the top. I wait for the price to retrace back to the 0.236 level. This will become my entry zone. Once the price retraces to this level, this is where I will go long. I then put on the fib extension tool. This tool has three clicks. The first click is at the bottom of the engulfing candle, the second click is at the top of the engulfing candle. The third and last click is just a horizontal extension of the second click moved out to the right so we can see the levels. Now normally, these two levels that appear on the chart can be used for two possible targets. However, I like to use the middle Bollinger band as a guide for a target as well as the top of the Bolinger bands. But, we need to get a minimum of a one to two risk to reward. If the top level coincides with the 1.618 fib level, then that’s perfect confluence. I normally place my stop a few pips below the bottom of the engulfing candle. Now, I do not like pin-pointing bottoms. This is why this strategy needs to be trend following. The engulfing candle helps confirm that the bulls are still intact. I would also like to see the engulfing candle close above the yellow resistance zone, although it doesn’t have to. However, if it does, this will show even further confluence to this setup. As I write this, the current 4-hour candle has around 50 minutes left until it closes. Let's watch and see what happens with this. Hope you all have a good Thursday. See you all on the next one. The Vortex Trader.
OANDA:DE30EURLong
by TheVortexTrader
NASY100Nas was setting up for a great trading opportunity on both sides which is very rare to say the least. There were many confluences to have assisted with indication of buying and selling pressure for the day. Confluence #1: Triple Top pattern, Price closing below 13361.00 on lower TF, Price closing below the directional bias arrow of 13651.00 Short 7:1 Short 26:1 Long 22:1 Looking plainly at price action and overall technical analysis, there were multiple opportunities to have an edge of the market today. Happy Tuesday Traders.
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by KeyTrades17
EUR/USD Looking For A Bullish Confirmation Bounce On SupportLooking at trading EUR/USD. We are on the 4-Hour Chart. As we can see, the price has been pushing downwards recently. Some would say we have broken out of a 4-hour ascending channel. I'm looking at the support around the 1.01 price point. We can see that this area was flipped from resistance to support and has bounced off of this zone every time we have come close to it. Does this mean that it will bounce off of this area again? We cannot assume that if the price touches this previous support level that price will bounce off of it and head back up. We need some sort of tradeable pattern or bullish confirmation entry that will help give us confidence and confluence to enter into a long position. A bullish engulfing candle at the bottom of this support zone would be ideal. We would also need to see strong volume accompany this engulfing candle. If the price breaks through this support zone and closes below, I will then start to look for short setups using that area that would then be flipped from support to new resistance. But we are not there yet. Let's keep our eye on the ball and wait for an entry. If we get our possible long position setup, I would suggest the price area of 1.025 as a good target area as we can see that this area has been respected in the past as resistance. Looking at the daily chart, we can see that the overall bias is still bearish. We have not broken out of that giant daily descending trend line, but on the 4-hour we are still trying to make higher highs and higher lows. This is why I am using the 1.01 price point as the make-it-or-break-it support level. If that level breaks, then we are officially looking for short positions again. Let's keep our eyes peeled. Hope you all have a great day. The Vortex Trader.
Long
by TheVortexTrader
SOL/USD: Bought in the demand zoneSolana look very interesting to long in this point. I will consider this trade to long in this cryptocurrency from $40.10 USD. I put my SL to $36.80 USD, And we could to see 2 targets to watch. The first target will be around $46.60 USD. And my expect 2nd target will be around $50.40 USD. It's look a increase of almost 26% in this single trade. I'm long in Solana now!!! Meanwhile, we're still in this chartist pattern called bearish rising wedge, and also, we could to look a good opportunity to not only short, but long into this consolidation that Solana forming now. In difference that in H4 and H8 we forming a bullish channel, we expect that only the price still up until $50 dollar. The H4 still bullish. So guys, I like to trade in H4 timeframe or above in cryptocurrencies, you can to take a lot time to make anything what do you like, cryptocurrency it's very easy to trade only following the trend, but Forex market, as I know that it's a global financial market, it's very hard and a pure market that you must to read a lot economical news and pay attention what challenges apply the central bank to take decision to change the perspective. And also it's required a lot study continuously.
FTX:SOLUSDLong
by harisonhbn9718
1
XAU(GOLD) Longterm PredictionHi everyone hope you have good moments i have an longterm idea on GOLD according to price action levels and Elliot Wave Analyze. first lets look at Wave analysis. we can see above an impulsive wave that seems to be ending. and after that we expect a deep ABC correction for this compelete cycle. i show this ABC in my chart. there are another possible shapes for this ABC but i illustrate one of them above. after that lets go to keep an eye on price action. GOLD bounces from 1680 support strong with 2 candlestick patterns: 1)bullish engulfing 2)bullish harami so we expect to grow approch 1790 resistance first. probably after that we will see a correction again (WAVE B) and then break this level toward 1860 resistance. this level is the end of wave 4 from prior impulsive wave and the level 50% retracement of impulsive 5 wave too. with a deep look we see 200 day Moving Average around this level. so if something unnormal dont happen , we see this level soon. notice that interest rate set to 0.75 upper to 2.5 and the market price this rate before. and seems inflation peaks and will be go down in front months. dont forget to manage your risks. our first duty is protect our capital after that we think about profits. thank you all for reading my opinion. tell me your criticism in comments and i will be happy.
TVC:GOLDLong
by TraderAmin-KZ
Gold Bullish crab + bullish engulfing - Rocket to 1880Hey everyone, today we have a nice bullish setup on gold based on a bullish Crab (harmonic pattern) which is a pattern with a very high winning rate of 90%, so this trade should go well. Also there is the bullish engulfing which is a trend reversal candlestick where the buyers engulfed the whole bearish candle, meaning that bulls took all the strenght from the market and are now preparing for an impulsion. and also price is above moving average indicator so it is the perfect moment to buy. This trade have a nice Risk to Reward ratio of 1:6. Don't forget to like and subscribe if you want more content See you
OANDA:XAUUSDLong
by UnknownUnicorn41061907
#bitcoin $BTC printind the end of this bear market?BTC has been trending downwards for more than 200 days, and is currently printing a bullish engulfing candle on the weekly timeframe! if we close this candle above the previous candle's open price, which is about $21038 , we can expect an uptrend to start, which is what happened last time we had a bullish engulfing candle at the end of a downtrend: last year, in July let's hope we close above 21k tonight!! could this be the end of the bear market? I think it might be, but we of course need some more confirmation to be sure it really is let me know what you think about this idea! personally opened a BTC long :)
Long
by opop777
4
Buy the support - Range Strategy (+ 3000 points)Hey everyone, I'm very happy to share with you my first chart posted on TradingView. This is a bullish setup on USOIL based on several elements that i've found through technical analysis. Usually the winning rate of this type of trade is around 70%, so if having a correct management of risk its a very profitable idea. Buy Setup USOIL : - price ranging between 90 and 120 bounce on important support - Ema bounce - bullish engulfing aiming for 124 lvl
TVC:USOILLong
by UnknownUnicorn41061907
4
DLF is ready for uptrend hey guys , DLF stock is ready for uptrend as you can see that , this stock was moving in pattern called DESCENDING TRIANGLE and now you can see that , this stock is at its LOWEST SUPPORT POINT , and this stock is also at the , VERY STRONG SUPPORT LINE. One more point to buy this stock is that, this stock is a BULLISH ENGULFING CANDLE , these 3 reasons are giving us confidence to buy this stock and earn HIGH RETURNS BUT FIRST CONSIDER THE GLOBAL SITUATION, I.E INFLATION WAR BETWEEN UKRAINE AND RUSSIA , RISING BANK RATES , AND RISING EXPORT DUTIES ON OIL AND GAS after considering these situations you can BUY this stock AND pls guys , if u liked my analysis comment, like and follow my account 😀😀
NSE:DLFLong
by TRADERS_AREA