Angel, in my experience
engulfing candles work best on the daily time frame.
The bullish
engulfing candle following the move higher last week, is accompanied by a RSI that is rising and bullish and a MACD that is about to cross up.
I would have stop trading but your articles made me to stay back, on your daily
engulfing candle 50 % entry, will I cancel the order if it did not trigger on the next candle or how many candles will it take to trigger?
It is a Hanging Man, a potential reversal candle, a bearish
Engulfing Candle and as it is Solid Black shows bearish intraday price action.
Look for
an engulfing candle (on the bodies) on the daily chart above the 50 sma and then turn to the weekly to see if the rsi is pointing up.If you want more info just e-mail me.
The bullish
engulfing candle Friday gives hope that this was a quick move lower and it is ready to move up again.
Otherwise, gold also looks bullish (bullish
engulfing candle on Daily)- but the same situation there.
What's more important is whether the range of
the engulfing candle contains the previous one.
Another way of saying it is that the previous candle is completely contained within
the engulfing candle's range (low to high).
What if
an engulfing candle forms in an area where I don't have a key level drawn, can i draw a horizontal line near the engulfing candle to check if it's a key level I missed?
First and foremost, know that the terms engulfing bar and
engulfing candle are interchangeable.
Even if the daily TF has formed a bearish pinbar, the 2 hour TF is in a down trend but the bullish
engulfing candle shows a reversion to the mean.
To be a valid signal, the range of the bullish
engulfing candle must completely engulf the previous candle's range
Notice how the body of
the engulfing candle doesn't cover the previous one.
One thing I want to point out is that it's okay if the body of
the engulfing candle doesn't engulf the previous candle.
However, the thinking at the time was that the bullish
engulfing candle is what triggered Tuesday's intraday rally.
So, the sentence from definition:
engulfing candle RANGE engulfs the previous candle has to be threaten very precisely.
Looking at the 9/22/2017 close for AUDJPY Daily chart how would you setup a trade given that a bullish pin bar just formed right after a bearish
engulfing candle?
Some traders, for instance, will not trade an engulfing pattern unless
the engulfing candle is much larger than the previous candle.
Occasionally,
the engulfing candle in one of these patterns will be very large.
Many traders would say that a relatively large
engulfing candle signifies a strong reversal ahead.
Again, keep in mind that the larger
the engulfing candle, the less likely it is that you will be left with a favorable risk to reward scenario.
Your teaching is wonderful, Please will I use confirmation candle for bullish
engulfing candle trading?
excellent description of
the engulfing candle Chris.This can also work very well with a wavy trend as well from my experience.
The idea is to wait for a pullback (by one of the following candles — preferably the very next candle) to the 50 % mark of the total range of
the engulfing candle during certain situations.
Moving out to the weekly chart the bullish
engulfing candle for the week suggests that new all - time highs may be coming soon.
The potential Evening Star candle on Monday at the falling 20 day SMA kept the caution flags up, but they were tossed aside later in the week with the bullish
engulfing candle on Thursday and confirmed higher Friday.
Not exact matches
The inside bar occurs when a «mother
candle» complete
engulfs the range, from high to low, of the «baby
candle», or inside bar.
The first
candle of the pattern should be red confirming the bearish nature of the market and the second
candle should be a green one, long enough to completely
engulf the previous day's red
candle.
Your entry would be the standard entry for a bullish
engulfing pattern, which is the open of the next
candle.
The inside bar occurs when a «mother
candle» complete
engulfs the range, from high to low, of the «baby
candle», or inside bar.
In the pattern above, the last
candle of the pattern
engulfs the previous three
candles (nearly four).
However, the second candlestick in this three -
candle formation must be a low range
candle, like a spinning top or doji (not required in a regular
engulfing pattern).
I won't take an
engulfing setup unless the
candle has broken a key level in the process.
There is some controversy as to whether the body of the
engulfing bar must completely
engulf the previous
candle.
That being said, these
engulfing patterns, as well as other candlestick reversal signals, can be very effective after just a few
candles have made consecutive higher highs or lower lows.
In some frequently gaping markets, you may encounter cases in which a bullish
candle engulfs another bullish
candle.
You could have made a nice profit by entering a buy position at the open of the
candle following the bullish
engulfing pattern.
I'm defining a bullish
engulfing candlestick pattern as one in which the bullish real body of a
candle engulfs the bearish real body of the previous
candle.
That's because the confirming
candle will typically
engulf, at least, the real body of the inverted hammer, and it often
engulfs more.
As you can see, the
engulfing pattern has it's own confirmation
candle built right in.
A standard bearish
engulfing candlestick pattern is simply a candlestick that opens at or above the close of the previous
candle (almost guaranteed in Forex) and then closes below the open of the same (previous)
candle.
The Nose
Engulfing pattern consists of two
candles.
The Body of the second
candle engulfs the Nose of the first
candle.
The Key
Engulfing pattern consists of two
candles.
The body of the second
candle engulfs the body and wick (tail) of the first
candle.
The second
candle is expected to
engulf the first
candle.
I loved the small circle of light Thomas's
candle gives off while the rest of the game is
engulfed in pencil scratched blackness like a child was scribbling out a drawing.
I Want Always To Be Remembered in Your Heart
candles are based on Nir Hod's paintings of flowers
engulfed in flames.
Let us not send the fire department to extinguish the
candle in the metal pail; let's send them to douse the conflagration
engulfing the ten city blocks down the street.