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Engulfingpattern

GBPNZD I It Will Head Downward Welcome back! Here's an analysis of this pair! **GBPNZD - We are monitoring GBPNZD for a short in the current New York Session. Bearish engulfing pattern on 4hr. price has pulled back to structure and rejecting. Good luck! We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met. Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support! Brian & Kenya Horton, BK Forex Academy
Short
by BKTradingAcademy
ENGULFING CANDLE. Powerful reversal candlestick pattern🕯 ✅Candlestick patterns trading is one of the oldest but most effective ways to analyze the foreign exchange market. The trader needs to find certain patterns, and based on them, decide where the price will go. Today we will talk about one of these candlesticks, which is called the "engulfing candle". There are two types of it: bullish and bearish. The appearance of such a model on the chart with a high probability indicates a possible reversal of the trend and is a signal to enter the market. Types of engulfing and their features ⚠️So, we realized that there are two types of this candle: 🟢Bullish. It indicates that the trend is turning towards an increase in the value of an asset or currency pair. The candle must engulf the range of the previous bearish candle to be valid. 🟢Bearish. The same as with bullish, only the opposite. It indicates that the trend is turning towards a decrease in the value of the asset. In this case, the candle must engulf the range of the previous bullish candle. ✅The formation of the "Bullish engulfing" candle says that buyers have sat on the throne, and "Bearish" - sellers. Let's discuss the theoretical foundations of the pattern. In the case of the "bullish engulfing" pattern, everything will be the same, just the opposite. Rules for the formation of the "bearish engulfing" pattern: There should be a bullish trend in the market, and the price should be on a key level. ❗️A long-bodied bullish candle appears (that is, directed towards the trend). The opening of the second candle should be carried out with a gap relative to the closing of the first, and its body should be larger than that of the previous one. It seems to engulf the trend with its dimensions, and therefore it is necessary to sell (a bearish candle indicates the beginning of a downward trend). ❤️ Please, support our work with like & comment! ❤️
Education
by UnitedSignals
6
GBP/USD Daily Bearish Engulfing playOn the daily today it looks like we are going to close as a bearish engulfing, of course this is a retail pattern none the less I'm looking to trade it... First of if you drag a fib from high to low we get 61.8% fib confluence around 1.33071 which is also where a naked level is, perfect location for my order to be left. In this area there is also 50 ema which is another confluence I use to trade so they all seem to be stacking up in this area. Lastly ATR will be moving at market rollover this evening which should be within my stop for a extra bit of security... My stop is beyond the high of the engulfing Tp at D1 swing below market also around -27.2% fib If price creates structure around 1.32874 ill be looking for a break and retest of this to play for the failure of the engulfing Lmk what you think of this, this is the first idea I've ever posted lol
Short
by broberts28
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 1H HEAD AND SHOULDERS NECKLINE BREAK PULLBACK ENGULFINGOn the EURGBP 1H time frame there was recently a perfect head and shoulders pattern that formed. A strong neckline break followed by a 50% pullback and then a strong bearish engulfing set up a perfect high probability trade. The head and shoulders pattern confirms that the trend is temporarily turning bearish. The engulfing candle opened perfectly at the neckline and spiked up forming a huge wick. The engulfing candle engulfed 6 previous candles which increases the probability of further bearish momentum. As soon as the bearish engulfing candles closes, it is safe to enter short. A safe stop loss would be placed slightly above the high of the bearish engulfing candle. A riskier stop loss would be placed slightly above the bearish engulfing candle body high. A 1:3 risk to reward offers plenty of profit. It is also important to note that the bearish engulfing candle closed at 3am CST.
Education
by justinholtgrave
EURUSD Pin Back weekly 3.414Hello everyone there's my look for EURUSD for next week! On the high of swing there's a pin bar so i'm checking sitiuation and reactions on levlel 3.414. There's a 3rd touch from two symmetries as i drew and up from 1:18465 is a big space where will price go in my oppinion. I would like to see H&S pattern down there and also third touch on symmetry on the right shoulder. Up from 1.18465 there's no accumulated value which can stop the price, POC is 1.21870. So i wish u lot of succsess into new trading week and remember, be disciplined, wait for a signal! If you don't have a signal, you can't call anyone, so why do you want to trade without it?
by SpilakJ