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For bullish engulfing-
Recent price fall, then the green body should cover the red body and volume might be high at engulfing day. So long is created after crossing higher of 2 tops and stop loss is lower of 2 bottoms.
Engulfing pattern is when an opposite candle stick body covers the previous day’s candlestick.
Should occur in a trend.
Volume increase, but not necessary.
Body should cover previous day’s candlestick.
BUY- After the price crosses the highest point of the engulfing candle stick.
SELL- 1 time the risk taken.Engulfing pattern indicates a price reversal when the candle formed on a particular day covers the body of the candle formed on previous day.
The candles formed should be of opposite trend to indicate reversal.
Conditions:
1. Recent fall in price is witnessed
2. The latest bullish body should cover the previous day bear body.
3. Slight increase in volume is noticed.Completely covers the previous day candle stick is nothing but a Engulfing.
Bullish Engulfing:
Bullish body completely covers the previous days bearish body is nothing but a Bullish Engulfing.
The Bullish Engulfing should appear after a price fall.
Buy only above Highest point of Engulfing(A).
Stop loss below Low point of Engulfing(Risk Taken).
Exit=A+Risk Taken.
Bearish Engulfing:
Bearish body completely covers the previous days Bullish body is nothing but a Bearish Engulfing.
The Bearish Engulfing should appear after a price up.
Sell only below the lowest point of Engulfing(A).
Stop loss below High point of Engulfing(Risk Taken).
Exit=A+Risk Taken.
Bearish Engulfing:
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