In trading there are many candlestick patterns that you can find. Candlestick patterns themselves have a variety of shapes and types. One of them is like the Engulfing Candle pattern. This pattern, you will often find when you trade with a daily timeframe or at a lower timeframe.
The pattern of this Engulfing Candle is arguably very easy to observe. In addition, Engulfing Candle also has a high probability of trading, especially in a trending market. Engulfing Candle consists of two types of patterns namely the Bullish Engulfing pattern and the Bearish Engulfing pattern.
This Engulfing pattern will be more valid, if it has a short tail or no tail because the long tail of this pattern usually reflects uncertainty in the direction of price movements or a tendency to consolidate. Traders will usually determine the validity of this Engulfing Candle pattern with the length of the tail bar that swallows no more than 20-25%, the overall length of the candlestick's body.
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Bullish Engulfing Pattern
This Bullish Engulfing pattern is a pattern that can be used as an opening for Buy positions. To get more accurate results, make sure the movement of the market when it really is in a state of trending and not in a state of sideaway or consolidation.
If an Engulfing Candle swallows up to 2 or 3 previous candles, it means that the probability will also be higher. This candlestick pattern can usually be found at the end of a downtrend. Bullish Engulfing pattern can be used to detect Reversal at the lowest price level.
Bearish Engulfing Pattern
Bearish Engulfing pattern is a new candle pattern that can be seen at the end of the uptrend. The function of this pattern is as a signal to open Sell positions.
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To recognize this pattern, you can see it by ensuring that the first candle is a Bullish candle or a Doji candle, besides Engulfing candles must be Bearish Candle with a longer body of course. If an engulfing candle swallows 2 to 3 previous candles, it means that the probability will also be higher.
For trading using this Engulfing pattern, it's best if you want to enter a position, it would be better if done after the Engulfing Bar has been formed. The entry level that you can refer to is around the lowest level in the first bar.
The pattern of this Engulfing Candle is arguably very easy to observe. In addition, Engulfing Candle also has a high probability of trading, especially in a trending market. Engulfing Candle consists of two types of patterns namely the Bullish Engulfing pattern and the Bearish Engulfing pattern.
This Engulfing pattern will be more valid, if it has a short tail or no tail because the long tail of this pattern usually reflects uncertainty in the direction of price movements or a tendency to consolidate. Traders will usually determine the validity of this Engulfing Candle pattern with the length of the tail bar that swallows no more than 20-25%, the overall length of the candlestick's body.
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Bullish Engulfing Pattern
This Bullish Engulfing pattern is a pattern that can be used as an opening for Buy positions. To get more accurate results, make sure the movement of the market when it really is in a state of trending and not in a state of sideaway or consolidation.
If an Engulfing Candle swallows up to 2 or 3 previous candles, it means that the probability will also be higher. This candlestick pattern can usually be found at the end of a downtrend. Bullish Engulfing pattern can be used to detect Reversal at the lowest price level.
Bearish Engulfing Pattern
Bearish Engulfing pattern is a new candle pattern that can be seen at the end of the uptrend. The function of this pattern is as a signal to open Sell positions.
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To recognize this pattern, you can see it by ensuring that the first candle is a Bullish candle or a Doji candle, besides Engulfing candles must be Bearish Candle with a longer body of course. If an engulfing candle swallows 2 to 3 previous candles, it means that the probability will also be higher.
For trading using this Engulfing pattern, it's best if you want to enter a position, it would be better if done after the Engulfing Bar has been formed. The entry level that you can refer to is around the lowest level in the first bar.