Price Action: How to trade the engulfing candlestick or the big shadow p...

  

BO Turbo Trader Price Action Guide for Binary Options Trader PDF https://goo.gl/VmcKjJ 👉 SMASH THE LIKE BUTTON 👈 👉 HIT THE SUBSCRIBE BUTTON 👈 👉 LEAVE A COMMENT 👈 Facebook-Group: https://www.facebook.com/groups/31949... Twitter: https://twitter.com/boturbotrader Binary Option Win Rate and Net Profit Calculator + Simulator https://goo.gl/NeUyCp Money Management Masaniello Program + Excel File https://goo.gl/9pNRhs Start Mining Cryptocurrency http://goo.gl/1mJLbU Risk Warning: Your invested capital may be at risk. This video is not an investment advice. Indicators: EMA 3 (blue) EMA 20 (yellow) EMA 50 (orange) EMA 100 (red) EMA 200 (purple) Bollinger Band Period 20 Deviation 2 (green) Bollinger Band Period 20 Deviation 1 (white) Engulfing Candle Day Trading Strategy. With the trend isolated and a pullback occurring, wait for an engulfing candle strategy trade signal. For an engulfing candle strategy signal during a downtrend, wait for the price to pull back. Continue to wait until a down candle engulfs an up candle. A bullish engulfing pattern is a chart pattern that forms when a small black candlestick is followed by a large white candlestick that completely eclipses or "engulfs" the previous day's candlestick. A bearish engulfing pattern is a chart pattern that consists of a small white candlestick with short shadows or tails followed by a large black candlestick that eclipses or "engulfs" the small white one. As implied by its name, a bearish engulfing pattern may provide an indication of a future bearish trend. Engulfing Candle Day Trading Strategy. With the trend isolated and a pullback occurring, wait for an engulfing candle strategy trade signal. For an engulfing candle strategy signal during a downtrend, wait for the price to pull back. Continue to wait until a down candle engulfs an up candle. The engulfing candle trading strategy allows us to enter a trend at an opportune time. Using the trend, and the engulfing candle as a trade trigger, provides a powerful combination. Candlestick charts have become a staple for most traders, and nearly every trading platform offers this highly visual chart style. As with any candlestick pattern, the bullish or bearish engulfing pattern takes more priority depending on the time frame that they are formed on. Therefore, when looking to trade with the engulfing candlestick pattern, it is essential to first scan the charts from monthly, weekly and daily and then to the lower time frames. However, as usual in candlestick analysis, the trader must take the preceding and following days' prices into account before making any decisions regarding the security. Bullish engulfing candles indicate immense buying interest that swallows the range of the prior candlestick low and surpasses the candlestick highs. The Engulfing Pattern is a candlestick pattern in which the second candle's body covers the whole body of the previous candlestick. According to Investopedia, both the body and wick of the previous candlestick must be covered by the Engulfing candle. The bullish engulfing pattern is typically a buy signal because it can potentially mean a bearish trend is turning upwards. Likewise a bearish engulfing candlestick can hint that a bullish trend is reversing. In order for any chart pattern to be useful we need to know its limitations. Therefore, Forex traders should be aware of the various candlestick setups that can occur in the market. Today we will discuss one of these candlestick formations. This candlestick structure is called the Engulfing candlestick pattern. Spotting price reversals and continuations through the interpretation of price action is an important skill for Forex traders to master. Candlestick analysis can help make this process easier. Candle pattern interpretation does not only make navigating the market easier, but it can also be a useful trading tool. Now you must be asking yourself, if trading engulfing bars is a sub-optimal way of trading, why do so many price action sites and teachers market this way of trading as much as they do? The reason behind that is very simple.