Hello everyone!
Today I want to share with you a very strong pattern that I use myself and that you can find on any chart.
When used correctly, this pattern is able to suggest the best entry point and possible reversal, which potentially promises you good profits.
Identification
The engulfing pattern looks like two candles, the first of which is small, and the second is large and its body will be larger than that of the first, and the candle is directed in the opposite direction.
The logic of this model is simple - there is no more strength left in the market to push the price - the first candle, after which a large one is formed and uses weakness to push the market in the opposite direction.
A couple of important conditions:
There must be a trend before the pattern.
The second candle should be large and have the opposite direction.
In addition, the first candle should close almost without a shadow, that is, at its maximum.
Trading in a flat can bring a lot of losses, since a lot of false signals appear in such a market.
Trade
The entry into the market is made after the level of the first candle is broken - that is, the market has swallowed the candle and goes in the opposite direction.
The stop loss is placed beyond the high of the first candle.
Take profit. There are several ways to set a take profit.
You can set it at a ratio of 3:1 or more to your stop loss.
Another way is to set a take profit in the area of the next level. This method can bring more profit, while it is worth remembering that the market may not reach the level.
Timeframes
The choice of timeframe depends on your trading style, as this pattern occurs on all timeframes.
But it should be understood that the lower the timeframe, the worse the figure will be worked out.
The ideal time frame for trading is 4 hours.
You can choose the one that suits you.
Conclusions
This pattern, like all the others, provides a guide for trading, but this does not mean that the market will definitely go in the direction you need.
When analyzing, it is worth analyzing the whole picture, do not rely on only one pattern, use indicators.
When trading from the level, this model will be worked out more often.
Use patterns correctly.
Good luck!
Today I want to share with you a very strong pattern that I use myself and that you can find on any chart.
When used correctly, this pattern is able to suggest the best entry point and possible reversal, which potentially promises you good profits.
Identification
The engulfing pattern looks like two candles, the first of which is small, and the second is large and its body will be larger than that of the first, and the candle is directed in the opposite direction.
The logic of this model is simple - there is no more strength left in the market to push the price - the first candle, after which a large one is formed and uses weakness to push the market in the opposite direction.
A couple of important conditions:
There must be a trend before the pattern.
The second candle should be large and have the opposite direction.
In addition, the first candle should close almost without a shadow, that is, at its maximum.
Trading in a flat can bring a lot of losses, since a lot of false signals appear in such a market.
Trade
The entry into the market is made after the level of the first candle is broken - that is, the market has swallowed the candle and goes in the opposite direction.
The stop loss is placed beyond the high of the first candle.
Take profit. There are several ways to set a take profit.
You can set it at a ratio of 3:1 or more to your stop loss.
Another way is to set a take profit in the area of the next level. This method can bring more profit, while it is worth remembering that the market may not reach the level.
Timeframes
The choice of timeframe depends on your trading style, as this pattern occurs on all timeframes.
But it should be understood that the lower the timeframe, the worse the figure will be worked out.
The ideal time frame for trading is 4 hours.
You can choose the one that suits you.
Conclusions
This pattern, like all the others, provides a guide for trading, but this does not mean that the market will definitely go in the direction you need.
When analyzing, it is worth analyzing the whole picture, do not rely on only one pattern, use indicators.
When trading from the level, this model will be worked out more often.
Use patterns correctly.
Good luck!
🚀TOP 1 broker🚀
bit.ly/3spSQqC
🔻FREE Telegram channel🔻
t.me/DeGRAMChannel
🔻Contact for Paid SIGNALS🔻
t.me/DeGRAMForex
bit.ly/3spSQqC
🔻FREE Telegram channel🔻
t.me/DeGRAMChannel
🔻Contact for Paid SIGNALS🔻
t.me/DeGRAMForex
