Engulfing candles and Reversal opens - strong signalsFirst let me caution that these are strong signals of a potential stock move. You still need another reason to enter a trade.
Engulfing candle in this yellow box is bearish. Stock must trade below its low in order to trigger puts entry. Same with bullish engulfing candles - the next day or two should see a trade above the high to trigger buying (or calls).
There is a reversal candle open in red box, also very bearish. Reversals happen when the opening price is lower than the previous day's green candle open (bearish) or higher than the previous day's red candle open (bullish).
Looking at this chart, and at 30min as well, what price targets would you set and which option would you buy? write it down and see what happens... or trade a small position (after identifying stops)
