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Engulfingpattern

Rare Engulfing Pattern To Dictate Future Movement For S&P500March 4, 2019 saw an engulfing pattern in the candlestick chart for the S&P 500 . Engulfing patterns are not rare, but one that engulfs the the price range for the prior 6 trading sessions is something to understand. I went back and found this same event (engulfing a minimum of 6 prior trading sessions) has occurred in the market only 15 times in the last 40 years. There are roughly 252 trading days in a year. Multiply that by 40 years and there have been roughly 10,080 trading days in the last 40 years. The event has occurred 0.149% over the studied time frame. This would qualify as very rare as defined by the i-base.info website. Okay so this particular pattern is very rare, but why does it matter? Below are the charts for the most 10 most recent occurrences of this pattern. The critical information in these 10 prior instances are: 1. The index's direction prior to the pattern 2. The direction of the first break from the pattern's range The full-analysis is available at my website. The next few days will dictate the accuracy of my analysis July 2017 December 2013 and January 2014 April 2011 January 2005 - January 2007 January 2001 May 1997 - May 1993 -
SP:SPXShort
by StockSignaler
1
What is a Engulfing Pattern?Trading with the trend is one of the most advantageous things a trader learns to do. Using an engulfing candle day trading strategy is one way to get into trending moves just as momentum is picking up. The engulfing candle trading strategy works best when used in conjunction with a trend. The first step in applying the strategy is to determine the dominant trend direction, and thus the direction we will trade in. An uptrend is defined as higher swing highs and higher swing lows in price. Prices move in waves, advancing, pulling back and then advancing again. In an uptrend the advancing waves are larger than the pullbacks, creating overall progress higher. During an uptrend, only take long positions (buy). A downtrend is defined as lower swing lows and lower swing highs in price. During a downtrend the declining price waves are larger than the pullbacks higher, creating overall progress lower. During a downtrend, only take short positions. - A high probability price action approach for trading bullish and bearish Engulfing patterns is to look for the pattern to appear at important support and resistance levels. - The best place for a stop loss order in an Engulfing trade is beyond the Engulfing pattern extreme. This would mean that if the Engulfing setup is bullish, the Stop Loss order should be placed under the lower candlewick of the engulfing candle. If the Engulfing setup is bearish, then the Stop Loss order should be located above the upper candlewick of the engulfing candle. Wait for a Pullback: Once the trend is established, wait for a pullback. If there is no trend, or it is unclear, don't utilize this strategy. Waiting for a pullback means your getting advantageous pricing for the next wave of the trend, when and if it unfolds. What is the first target?
Education
by FxAzerbaijan
BAT/BTC STRONG SIGNALS OF TOP REVERSAL!Hey everyone, today I'm going to make my analysis on BAT and explain my point of view, so let's begin! When we climbed, we were reaching a previous resistance (the bearish engulfing bar at 2 march 12-16h), if we watch closely, we had a long legged doji, which usually signals a top(depending on where its formed) (it's a bit subjective, may not be a doji, but the idea still maintains) , formed also a bearish harami, and now it's forming a bearish engulfing bar or a bearish harami, in the same area of resistance. From the candle of 8 march 4h, we can also conclude, that based on the close (broke through resistance and closed below it) , which is also a bearish signal. Strong signals that the market is turning. According to my Fibonacci Analysis, I'm expecting a drop to the golden pocket (between 61.8 and 65) (4646-4670) which will serve as a temporary support, and will probably pump from there to 4924 (38.2 fib resistance , this is just a supposition if it indeed does pump in this temporary support). If you guys watch closely, that fib of the short trade, has the 1.272 target right in my buy zone, which is an area where multiple fibonacci levels almost interlap, making this zone really powerful. This buy zone consist of 1 golden pocket, a 78.6 fib support level, and the 1.272 possible target (if the pump above occurs). Buy zone: 4440-4486 When is the trade ready? 1) If now it forms the bearish engulfing bar or a bearish harami. 2) If it doesn't go above 5125. You know what they say: If the public is very bullish, it means institutional are selling! Be prepared. If you want to share your ideas , comment down below and like if you enjoyed this analysis. Disclaimer: I'm not a financial adviser , i'm not responsible for any losses due to following my chart analysis!
Short
by Vasques
Bullish engulfing in M15 graph of a second day IPO stock SET:OSPJust before the market close in the second trading day in the Stock Exchange of Thailand 20181018, the 15 minute graph of an IPO stock SET:OSP showed a bullish pattern of a pin bar and its engulfing neighbor that triggered a possible new uptrend. The pin bar had the body portion less than 25% and the next bar was a full and long up bar. Both bars can be easily located by the Graph Reader Pro 2.0 for TradingView. To get invited to use this tool, drop me a comment below or in TradingView private chat.
SET:OSP
by nimit.chomnawang
Engulfing Candlestick Pattern : ENGULFING PATTERN is often considered a "reversal pattern", but it is not always so, this model can be considered a simple pause of the major trend. An engulfing pattern is an excellent trading opportunity because it can be easily spotted and the price action indicates a strong and immediate change in direction. In a downtrend, an up candle real body will completely engulf the prior down candle real body (bullish engulfing). In an uptrend a down candle real body will completely engulf the prior up candle real body (bearish engulfing). - A high probability price action approach for trading bullish and bearish Engulfing patterns is to look for the pattern to appear at important support and resistance levels. - The best place for a stop loss order in an Engulfing trade is beyond the Engulfing pattern extreme. This would mean that if the Engulfing setup is bullish, the Stop Loss order should be placed under the lower candlewick of the engulfing candle. If the Engulfing setup is bearish, then the Stop Loss order should be located above the upper candlewick of the engulfing candle. What is the first TARGET : We hope to have been useful! Thank you for your support and trade with care!
Education
by asdfghjhhg
NQ / NASDAQ / SP500 - Preparing for bullish buy signalsThe QQQ have been on a tear for about a week now. If you we're watching my analysis from 3-4 weeks ago you were aware of the inside bar setup that I was waiting for a bullish breakout of. Although we had a false break down on 5/23, price immediately recovered and the bullish breakout that I had been predicting did ensue. The price action on 5/23 produce a very bullish Inside-Bar/False Break pattern as well as a bullish engulfing bar, all above a critical support level. This generated a number of overlapping buy signals that many of you, including myself ended up going long on. I cashed out as price approached upper resistance and now we can see price has begun to pull back a bit. I will be watching for price to fall back to the support zone and then new bullish buy candlestick patterns to form such as a bullish pin bar, bullish engulfing bar or inside-bar. As long as price remains above 7,000 I am going to be strongly bullish and be watching for any signals to get long with the trend.
CME_MINI:NQ1!Long
by krugman87