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Engulfing is a trend reversal pattern in technical analysis using candlesticks.
Conditions
– The recent fall/rise in price should be witnessed
– The latest Bullish/Bearish body should cover the previous day’s Bearish/Bullish body
Buy – when the price goes above the previous day’s high or stop loss
Sell – when the price goes below the previous day’s low or stop loss
<p style=”text-align: left;”>The green body covers the red body and volume should be high is a engulfing pattern.</p>
Engulfing pattern is used for trend reversal .
Conditions :
– Recent fall / rise in trend.
– the candlestick must completely engulf the previous candlestick.
Buy : When prices go above the Engulfing candlestick . Stop loss : Engulfing low (long position )
Sell: When prices fall below the low of the Engulfing candlestick. Stop loss: Engulfing high. (short position )
Engulfing pattern bullish or bearish are candlestick reversal patterns .
Engulfing candlestick patterns takes two candlesticks to be identified. A bullish engulfing pattern is characterized by a bullish candle whose body, the open and close engulfs the previous candle’s body. Conversely, a bearish engulfing pattern is characterized by a bearish candle whose body engulfs the previous candle’s body.An engulfing candlestick patterns are usually identified near the tops and bottom.
Buy When prices is above the Engulfing candlestick
Sell when the price is below the Engulfing candlestick
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.
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