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Engulfingpattern

4 TRADE LEVELS XAUUSD - PRECISE PRICE LEVEL THEORY After a successful sell in our community at 2719-2726 , today we are presented with a tough perspective due to the fact that now the current market price is entangled between the Supply and Demand Levels of H4 & Daily indicating a market cool off scenario entering a passive sideways. So best strategy for today is to let the eruption of the market happen first and attempt on a reversal trade rather than seeking for a continuation trend trade.
OANDA:XAUUSD
by MrBlackSheep
7
GBPAUD at most important resistance since 2020The GBP/AUD pair shows a notable pattern on the daily chart, displaying a clear uptrend that has persisted since July 2024, characterized by rising lows but encountering resistance at the 2.000 level. Recently, the price approached 1.9967, a significant resistance level not seen since 2020. This level is pivotal, not just as a historical high, but also as a key psychological barrier near the round number of 2.000. Following this resistance testing, the price has begun to exhibit signs of weakness, indicating a potential reversal or at least a short-term correction. Current Market Context The bullish trend has been backed by a distinct ascending trendline connecting the key lows. However, as the price neared the 1.9967 resistance, candles with long upper shadows emerged, signaling rising selling pressure. Potential Sell Opportunity: Close Below 1.9735 A close below 1.9735 would result in a Bearish Engulfing pattern, where a bearish candle completely covers the previous bullish one, indicating a shift in market sentiment toward sellers. In this context, closing below 1.9735 would validate this pattern and support a potential sell-off. Characteristics of the Potential Sell Trade: Entry Point: Approximately 1.9730 (upon a close below 1.9735). Stop Loss: 2.0010, above the recent high, to guard against false breakouts. First Target: 1.9350 (380 pips away), aligning with significant support from November, where the price faced strong rejection previously. Second Target: 1.9150 (580 pips away), corresponding to an even stronger support level, reinforced by the long-term ascending trendline. Risk-Reward Ratio: Risk: 280 pips (from 1.9735 to the stop at 2.0010). Reward: First Target: 380 pips (Risk-Reward Ratio: 1.35). Second Target: 585 pips (Risk-Reward Ratio: 1.52). This scenario presents an attractive opportunity for traders seeking a short-term trend reversal. Scenario: Breakout of 2.000 Resistance Conversely, if the price breaks and closes above 2.000, this historical resistance would be invalidated, potentially allowing the uptrend to continue. In this case: Entry: Close above 2.000. Stop Loss: 1.9900, positioned below the broken resistance to protect against retracements. First Target: 2.0100 (90 pips from the entry), a significant psychological level likely to attract market interest. Second Target: 2.0250 (240 pips from the entry). Signals Against Selling: A breakout candle with increasing volume above 2.000. Sustained closes above the resistance, indicating buying momentum. In this scenario, the bullish structure would resume, with buyers regaining control. Summary The GBP/AUD pair is at a critical juncture. A Bearish Engulfing pattern following a close below 1.9735 could present a viable sell opportunity, supported by clear targets and a favorable risk-reward ratio. Conversely, a break above 2.000 could pave the way for new highs, sustaining the uptrend. Traders should closely observe price movements in the upcoming sessions to determine the likely outcome. Disclaimer: 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Past performance is not necessarily indicative of future results. The value of investments may fall as well as rise and the investor may not get back the amount initially invested. This content is not intended for nor applicable to residents of the UK.
Short
by Marketscom
Once in a Decade Bearish Reversal on GoldThe week closed with bearish engulfing reversal indicating a drop from very high bullish level of 27 on the Thrend Strength After Reversal Indicator Such high level is reached only for the 5th time in modern gold price history. Previous occurrences of a drop from such a high level indicate a major correction in Gold prices: Drop from level 23 in May 2012 was followed by 23% correction Drop from level 25 in March 2008 was followed by 23% correction Drop from level 21 in February 2003 resulted in 9% correction Drop from level 22 in January 1994 resulted in 28% correction The biggest drop in history from level 42 occurred in July 1980 and resulted in 50% correction
ICMARKETS:XAUUSDShort
by HunterCoder
Understanding Bullish Engulfing Candlestick PatternThe Bullish Engulfing Candlestick Pattern is a popular price action signal used by traders to identify potential trend reversals in the market. If you're keen on mastering price action trading, understanding this pattern is essential. This guide will take you from the basics of the pattern to advanced insights, with easy-to-understand explanations to help you become more confident in your trading decisions. What is a Bullish Engulfing Candlestick? A bullish engulfing candlestick is a two-candle pattern that signals a potential reversal in a bearish trend. The pattern consists of a smaller bearish (red) candle followed by a larger bullish (green) candle that completely engulfs the previous one. This indicates that the buying pressure has overwhelmed the sellers, suggesting a shift from a downtrend to an uptrend. Key Features of the Bullish Engulfing Pattern Here’s a breakdown of the key characteristics: Number of Candles: The pattern consists of two candles. First Candle: A bearish candle, typically red, showing a decline in price. Second Candle: A bullish candle, typically green, that completely engulfs the previous bearish candle, including its wicks. Prior Trend: A bearish trend must precede the pattern to validate it as a potential reversal signal. Prediction: A potential shift from bearish to bullish trend. The Anatomy of a Bullish Engulfing Pattern To fully grasp this pattern, let's break down the structure: The first candle in the pattern is a small bearish candle, indicating the continuation of a downtrend. The second candle is a large bullish candle that opens lower than the previous close and closes higher than the previous high, completely engulfing it. This suggests a strong buying momentum. Why Do Bullish Engulfing Patterns Work? A bullish engulfing pattern is significant because it reflects a shift in market sentiment. Here’s why: Seller Exhaustion: The first candle shows a bearish trend, indicating seller dominance. When the second candle engulfs it, it suggests that sellers are losing control. Buyer Strength: The second candle’s larger body signals strong buying interest, indicating a shift in market control from sellers to buyers. Market Psychology: A bullish engulfing pattern indicates that traders are willing to buy at higher prices, leading to increased bullish momentum. Why a Pin Bar Can Be an Engulfing Pattern A common observation among experienced traders is that a pin bar on a higher timeframe can appear as a bullish engulfing pattern on a lower timeframe. This happens because: A pin bar shows a strong rejection of lower prices, which on a lower timeframe looks like a large bullish candle engulfing smaller bearish candles. This highlights the importance of multi-timeframe analysis. Understanding how patterns form on different timeframes gives a more holistic view of market dynamics.
CAPITALCOM:GOLDEducation
by ForexBee
Brent crude: Buying into the stormAny trade you take in oil right now is probably going to make you a quick win or loss . Oil has easily been the most volatile market this week - it's pretty obvious why 1) Hurricanes in the US disrupting supply 2) War in the Middle East For us, the trend is higher since breaking through $76 / bbl. And the latest fractal forming a higher low helped confirm this idea. This uptrend has not been properly established with 2 higher highs, which offers bigger possible upside but also a greater chance of never getting going. You can see the price is trapped between the 50 SMA and 200 SMA. We see a chance for a favourable 2:1 risk reward by trading the pullback from yesterday's bullish engulfing candlestick up to this week's high around 81.50. What do you think? Please share your ideas in a comment
OANDA:BCOUSDLong
by jasperlawler
Top 3 Must-Know Candlestick Patterns for BeginnersGet your cup of coffee or tea ready we are doing a crash course on Candlesticks today I’m walking you through three candlestick patterns every beginner trader should know—Doji, Engulfing Candles, and Hammers (including the Inverted Hammer). These patterns are super helpful when you’re trying to spot market reversals or continuations. I’ll show you how to easily recognize them and use them in your own trades. Let’s keep it simple and effective. Key Takeaways: Doji: Indicates indecision, potential reversals. Engulfing Candles: Bullish or bearish reversal signals. Hammer & Inverted Hammer: Bullish reversal after a downtrend. Trade what you see and let’s get started! Mindbloome Trader
Education
by Mindbloome-Trading
4
EURUSD Daily Technical AnalysisHi Traders! If we look closely at Daily Chart, the @eurusd pair could form a very interesting Reversal Pattern in the short term. From a technical point of view an Engulfing Pattern could appear with a minimum Target around 1.087 area (see chart below), but if this will work correctly as a “reversal” the projection could be even more interesting. That said, if we have Engulfing Pattern in the daily close, it might be interesting to try to take short position on the pullback with stop loss below the previous low or failure of the Pattern. Traders who have followed our previous analyses on our Blog can handle the long position taken on the Harmonic Structure (ABC Pattern) on 1H chart. The dollar slipped on Friday as investors fretted U.S. payrolls data could be weak after an unexpected slump in U.S. manufacturing raised concerns about a slowdown in the world's largest economy and lifted traditional safe-haven currencies. In conclusion, next week we have interesting macro events as well as follow the geo-political dynamics (Iran-Israel) and from the technical point of view we have a potential Reversal Pattern to follow today, let's see what will happen in the coming hours.
Long
by TheAnonymousBanker
12
The monthly on btcusd.The price confirms that it has reversed the bear market of 2022. We already knew this thanks to the analyzes of the lower time frames. With the engulfing bear not yet confirmed, the price draws a new price structure above the previous ath on a monthly timeframe, I know this is something we have already seen, but now we have the full picture and it is not something to be underestimated after we have seen on What resistance levels there was the first significant profit taking. Btc could catch its breath a bit before starting to run again, because with this confirmation which sees the sequence of highs and lows rising and the number of monthly sessions greater than the previous bear, it is only a matter of time, the price will take the direction of the rise and it will do so forcefully, when we cannot know, we have the long-term trend on our side, this would be enough even if we cannot predict the future.
BNC:BLX
by Melupira89
RECOGNIZING ENGULFING CANDLESTICK Hello traders! - I want to present the engulfing candlestick pattern and will try to explain why it is important to recognize this pattern formation. - The engulfing candlestick is a crucial tool in technical analysis for traders in financial markets. It serves as a powerful indicator of potential trend reversals or continuation, providing valuable insights into market sentiment and potential future price movements. - Recognizing and interpreting these patterns can enhance the ability to spot potential trend reversals, confirm existing trends, and make informed trading decisions. However, like any technical analysis tool, it is important to use engulfing patterns in conjunction with other indicators and risk management techniques for a comprehensive approach to trading. Follow, like, and comment to see the daily/weekly content: www.tradingview.com
BITSTAMP:ETHUSD
by GoodTradeST
#EURGBP selling opportunityEURGBP exhibits a valid bearish market structure in the 1-hour timeframe, as illustrated in the chart. This structure begins after the price tested an important daily resistance and was subsequently rejected. With this ongoing bearish move, we are inclined to take sell positions in this pair as long as the current structure persists. Upon closer examination, the price tested the bearish trendline and formed a 1-hour engulfing candlestick pattern . When combined with the preceding candles, it resulted in an evening star candlestick pattern. The occurrence of this pattern within a resistance area enhances the likelihood of its significance. The formation of this pattern leaves us with a clean-break area, which serves as an important supply zone where traders may consider selling this pair. Additional bearish confluences include the price testing the 1-hour and 30-minute 200 EMA. For selling this pair, the optimal area to place your stop-loss would be above the previous high. If the price reaches that point, it indicates the end of the bearish trend, and we would then be dealing with a bullish trend. If you've found this analysis helpful, please take a moment to like, comment, or share your thoughts with me.
Short
by mohemati
2
#Nikkei buying opportunitHello, traders and friends. I hope you all doing well. Let's delve into NIKKEI chart and explore why we believe there may be a potential Buying opportunity. The three-wave bearish corrective nature of this downward leg, following a bullish impulsive wave we observed on the chart, suggests the possibility of another bullish move, potentially testing at least the upper boundary of our longer-term bearish trendline channel. Supportive confluences that we have observed include the inner trendline, which has acted as both resistance and support multiple times, indicating traders' awareness of its significance. Additionally, the price has reached a static support line and a demand area from above, both of which serve as important support levels. Furthermore, the price retraced around 50% of the Fibonacci level of the last bullish move. Additionally, we've observed the formation of a 4-hour bullish engulfing candle, which can be seen as a trigger for this potential buying setup. If you have found this analysis helpful, please take a moment to leave a like and a comment or share your idea with me.
SPREADEX:NIKKEILong
by mohemati
1
Bitcoin:Monthly chart ViewHi guys. Hope you have had perfect trades. In this idea i will share you some TA perspectives about Bitcoin Longterm reactions according to historical datas. As you can see each time the price reached the MA50 , made a trough below it and then come back above. Now we can se in Monthly chart that after price shaped a Bottom under MA50 , it tries to come back above with a Bullish Engulfing pattern. after that we surpass MA50 with another white candle and now , Unfortunately we have some frauds in market. (China Evergrande Group bankruptcy and Tesla sold millions of BTC). So in my opinion after a few weeks , Bitcoin start to continue its smoothed run and go towards 36000. its the level we will see at the end of 2023. after that... Lets see what will happen and dont predict far futures :) If you like my opinion please tell me yours in comment. Thank you all my friends
BNC:BLXLong
by TraderAmin-KZ
6
Bitcoin Scalping PlanHello friends. According to following reasons i personally go LONG for BTC/USD : 1 - Reach the Higher Timeframe Valid trendline. 2- shape an Bullish Engulfing pattern on this line. 3-Reach the 27000 support level. 4-Bullish divergence Between Price and RSI. 5-Long distance from 50 , 100 and 200 EMA So for these reasons i think we can go up till drawn trendline and price 28200. Trade R/R is 1:2 and after that we should look after price for next analysis. Thanks for your supports.
Long
by TraderAmin-KZ
4
Trading Series – The ManagementMost of us will spend about 90% of our time thinking of what to buy and at what price we should get in. In fact, that is only 10% of work done. Focus on this scenario instead - “After getting into a position, how are we going to manage it with either a calculated loss when market go against us or how should we take profits when market perform better than our expectation? As usual we will do a few case studies on how I manage my positions for this year. Today’s content: 1. 90% of us – Spending too much time on “Getting in” 2. Steps to manage our trades after an entry? If you have been following, today’s is the 7th tutorial in our Trading Series: 1. “The buy strategy” 2. “The sell strategy” 3. “Developing long & short-term view” 4. “Choosing between the time frame” 5. “The entry” 6. “The exit” 7. “The management” Example 1 Micro E-Mini Nasdaq Futures Minimum fluctuation 0.25 point = $0.50 1 point = $2 10 points = $20 100 points = $200 1,000 points = $2,000 Example 2 E-Mini Nasdaq Futures Minimum fluctuation 0.25 point = $5 1 point = $20 10 points = $200 100 points = $2,000 Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises. CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
CME_MINI:MNQ1!Short
by konhow
EURUSD DailyCan I just say WOW at the rejection at the 200MA ?!? Honestly this is playing out how I would like to see the market. I recognize a price action candle, the shooting star. The shooting star often occurs when the market is buying and begins to react at some level of resistance. I am identifying my level of resistance as the 200MA. I would like to see todays candle (11/16) to close as an engulfed candle. ONLY IF todays candle close with momentum, the market is likely to continue to sell… But as of right now, I am going to sit on my hands and continue to watch the market form.
by Vanaaad
Bullish and bearish engulfing candles concept Educational Series Price Action concept series Engulfing pattern Engulfing means to coverup small thing with larger thing. It is a pattern which shows counter attack made by bulls or bears. Bullish Engulfing Whenever the entire of body red candles(Bear) is covered by Big green candle(Bull) then it is called Bullish engulfing candle. This pattern shows presence of bulls in market and bear are completely trapped. Significance of this candles generally seen when instrument is at crucial support or in bull territory where price has bottomed. Bearish Engulfing Whenever the entire of body green candles(Bull) is covered by Big red candle(Bear) then it is called Bearish engulfing candle. This pattern shows presence of bears in market and bulls are completely trapped. Significance of this candles generally seen when instrument is at crucial resistance or in bear territory where price has top. Please Like,share and follow my profile for more such educational tutorials.
NSE:APLAPOLLOEducation
by Darshan_Panchal