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Engulfing Pattern : When there is a down trend and suddenly a Green candle appears engulfing the body to the previous day High.
Conditions to Qualify: is good trade volumes.
When to Buy & Sell: when the engulfing candle is green in colour we should Buy if the engulfing candle is red in colour we should sell.
engulfing pattern is where a continuous negative trend is abrupt ted by a green candle or positive trend which should covers the entire body of the previous day bear body
Buy: when the prices crosses the high price of the engulfing day.
Sell: difference between sell and stop loss above the sell price.
Stop loss: lowest price of the engulfing day.
Reversal pattern.
Green body should completely engulf previous day red body.
Volume may be high, but not mandatory.
If seen after a bearish trend, then take long position, or entry just above the price of the top of the engulfing green candle.
Take stop loss just below the end of the engulfing green candle.
Target will be the same as the difference between entry and stop loss
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Engulfing pattern is where a continuous negative trend is abrupted by a green candle or positive trend which should cover the entire body of the previous day bear body.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Buy: when the price crosses the highest price of the engulfing day.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Stop loss: lowest price of the engulfing day.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Sell: difference between sell and stop loss above the sell price.</p>Engulfing pattern for Bullish after an price fall the pattern must cover the body of previous pattern with higher volume and green body when the trend tends to go positive buy at the point of previous high and stop loss at lower tail. Profit = A+ Risk taken
Engulfing pattern for Bearish after an price fall or rises the pattern must cover the body of previous pattern with medium volume and red body when the trend tends to go below the previous day lower bottom. buy at the point of previous lower bottom and stop loss at upper tail. Profit = A+ Risk taken
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