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Engulfing Candle

#PLTR - Price possibly rebouncing from key support at 20$?Hi All, my main 3 take-outs from this analysis are the following: 1- Price possibly rebouncing from a key support of 20$ (price has been moving between 27$ and 20$ since a lot f time) 2- 4H chart shws engulfing bullish pattern as also an RSI in oversld territory, which might be a god sign of possible reversal from these levels 3- There are still two gaps at 24$ and 27$ (as also at 31$) that will be needed to be filled sooner or later Not a financial advice, just personal opinion. Do your own due diligence and good luck!
PLong
by FrancescoMerlettini
WMT shortEntry price: 150-152$ Target price: 135-137$ Stop loss: 153-155$ Chart pattern: double top - the price formed the second top, thus the price reversal is very likely Candlestick pattern: bearish engulfing RSI: approaching 70 level, therefore, the price is almost overbought Conclusions: the chart pattern, candlestick pattern and RSI suggest the trend reversal in the near future. Thus, the short position is recommended with the stop loss above the resistance level. No financial advice
NYSE:WMTShort
by vf_investment
BTCUSD - H4/H1 - MAGICAL CLOUDS !H4 : Once again the clouds acted perfectly well on both sid e, in rejecting, respectively a downside breakout attempt around 60'000 and more recently an upside breakout around 63'600. In addition, price action on the top of the clouds, triggered a "BEARISH ENGULFING" pattern. Ongoing downtrend channel still in place and clouds area should be seen as a barometer for further development. Indeed, IMPLICATIONS a clear breakout of : 1) UPSIDE : 63'000/63'500 (former congestion top) would open the door for ---> a retest of ATH 2) DOWNSIDE : 61'500/61'000 (MBB & KS cluster and clouds support zone) would put the focus on ---> former low @ 59'500 ahead of lower levels; 56'525 is the 38.2% Fib retracement of the 39'590-66'994 rally and 55'147 is the Kijun-Sen or base line ! H1 Price action switched from an uptrend channel to an ongoing downtrend channe l and this change has been triggered by a "doji" which has been confirmed straight away by a long black candle (bearish engulfing) Currently below both MBB and TS and flirting with the KS important support level in this H1 time frame. A failure to hold above 62'763 would directly put the focus on the 62'000 area, ahead 61'600 and 61'000 (the latter level being the bottom of the H1 clouds support zone. In order to neutralise this ongoing downside move price action, the BTCUSD should quickly recover above 63'000 and hold sustainably on a closing basis; this would temporary neutralise the current ongoing selling pressure. Do you like my analysis ? If yes, please do not forget, to like it and to add me on your following list :-) Many thanks in advance. Have a nice trading day and all the best- Take care Ironman8848
GEMINI:BTCUSD
by Ironman8848
What are candlesticks in trading and how to use them?🕯 ✅The price dynamics of an asset are displayed on the chart in different formats, including bars, lines, or candles. The latter format is most popular among traders and is often used in technical market analysis. What are candles and how to work with them? 🟢Candlesticks (Japanese candlesticks) are a graphical way of displaying price dynamics, in which vertical rectangles and lines are used. This method was invented on the rice exchanges of Japan in the 17th century, from where it got its name. A price candle consists of two main elements: 1️⃣the body is a vertical rectangle that shows the opening and closing levels of trades; 2️⃣wicks (shadows, tails) - vertical lines from above and below the body of the candle, reflecting fluctuations in value in the interval between opening and closing. ❗️The main advantage of a candle over bars and a linear chart is that it allows you to get 4 important indicators for technical analysis at once: High - the highest price for the period; Low - the lowest price for the period; Open - the opening price of the period; Close - the closing price of the period. 🔴When using a linear graph to get the same information, 4 indicators would have to be displayed on the screen at once, which is inconvenient and complicates the perception of information. At the same time, candles display the process of cost formation in a specific time interval, so the position and appearance of candles on the hourly and daily periods will differ significantly Types of candles ⚠️Two main types of candlesticks correspond to market trends: Bullish candle - formed when the closing price of the period was higher than the opening price. On the chart, such a candle is displayed in green (on b / w - white) and indicates the victory of buyers in this time. A bearish candle - is formed if the period is closed at a price lower than it was opened. On the chart, bearish candlesticks have a red color (on b / w - black) and they show that sellers are dominating at the moment. ❤️ Please, support our work with like & comment! ❤️
Education
by UnitedSignals
15
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 EURUSD 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. ⭐️In a bearish trend, after a strong short rally, the price reaches some demand cluster. Instead of breaking that and going lower, the price forms a strong bullish candle. That candle engulfs the range of the previous bearish candle & its body size exceeds the size of the previous candle. 🟢Such a candle we will call a bullish engulfing candle. Quite often such a formation leads to a pullback or even a trend reversal. 🔔And there is just one single tip that will dramatically increase your performance trading the engulfing candle: It is recommended to rely on this pattern ONLY IF it is formed on a key level: ❗️Bullish engulfing candle must strictly form on a strong support. ❗️Bearish engulfing candle must strictly form on a strong resistance. Forming beyond key levels, the pattern occasionally will give false signals. ⏳Preferable time frames to trade engulfing candles are daily/4h. Learn to spot this pattern & you will see how efficient it is. What candlestick patterns do you want to learn in the next posts? ❤️Please, support this post with like and comment!❤️
Education
by VasilyTrader
28
EURGBP - 4H Short In Trend Bearish Engulfing SetupEURGBP has formed an in trend engulfing setup on the 4H time frame. The engulfing candle nearly engulfed 6 previous candles but didn't quite clear the previous candle high but the daily and weekly time frames supported this setup. Also, nearly all other EUR pairs are very bearish. The daily candle closed below a previous strong bullish engulfing. The weekly time frame has been bearish for the past 6 weeks. The 4am EUR retail sales high impact news event set up this trade. The engulfing candle closed @8am (CST) on Wednesday. Entry at 50% retracement level. SL set above engulfing candle high. TP set at 3X risk.
Short
by justinholtgrave
3