Engulfing Formation final

Hello everyone. Today we’re going to discuss a strategy called engulfing Candlestick strategy. Which is usually very good to trade. Especially on higher time frames. So here we are speaking about. Either a four hour chart of daily chart or chart. Why is that. That’s mainly because. Here we are talking about a strategy that is extremely powerful. It comes true when it comes to envisaging. And of the trends and trend reversal. We have prepared a couple of charts here to show you and to demonstrate. What our pros and cons are. When you actually take into consideration. this strategy and try to incorporate it in your in your daily trading plan. This is one of the most basic strategies because you only need a canvas the Japanese candlestick

A system that’s available on all platforms and the vast majority of traders use every day in trading. And as every strategy, we are discussing two different versions of bullish and the bearish one. So here we have an example of the bullish Brit machine golfing pattern. And us as it’s implied in the name. This pattern suggests that the bulls are taking control. From the bull of the bulls are taking control from the bears. And the first sign that you have to blink is trending. So if we have a downtrend. Or a declining trend as we see here so you can see here. I market the prices are, here we are. It’s a drop off of 600 pips. For over a very warmest couple of days. And then we’re looking for a reversal because as we know nothing happens, you know vertical very intricate in trading. So here what we have is we have. A bottom that is actuallyseen t o be formed Bullish engulfing candlestick.

What does this mean? You can see if you have two candidates six degrees on the bullish one. Is actually the one that did it. But it’s bigger than the previous bar or the previews can use. It can be seen here. So It indicates great buying interest that actually swallows the range of the prior kind of this one. And it surpasses, it’s not.
There are two types of bullish in gold think strike strategy more aggressive and more and more of a normal way. This is more normal since we’re only talking about a body that is bigger than the previous scandal while more aggressive one is you will see for example

You will see for example here is that actually both low is lower than the trading floor height is higher than the previous height. And actually Bogey’s is bigger so this is really engulfing a pattern or a candlestick. And it is much, much higher and much bigger than the previous than the previous candle.

So let’s get back to the people Trefort dollar in the Canadian chart and here as we said we have a drop of 600 pips then we are trading at the lows. As soon as before, we these include the scandal, you can see that we have a great buying interest and because of the high which immediately prompts the price to go higher because the bulls are taking short to control and push the price higher. And you can see that here from the lows to be ever retraced around 50 percent or 300 pips in this in this in this articular example. So if you decided to buy the price at the close of this four hour Candlestick at the 120 110. If you then you put you. Stop-Loss below the low or the engulfing candlestick. Which will be around 120 53 to 60 pips here and then you can just look for for another resistance or a of resistance. That you can close your profit very obvious and here you can see these two low lows here at around 130 123 50. And then if you just actually if you close your profit, then we are talking about we are talking about 200 pips more than 200 pips profit. Of course, if you are if you are patient of the second. The second

The example I have here is also your daughter is also bullish and got involved King patentee but as I said right now we have a messy Tunisian and colorful Can fell that completely engulfs or swallows the previous Candlestick here and you can see here again we have a down trend to recreate over height. You can see the older guys you can see here Lubert logos. And then we create this sort of a bottom here and then a huge big candlelight. Vigil prompts the price to go higher. And immediately from here we have 60 pips. 60 people small. Of course, this is for our chart. If you are just sculpting, then this is an intra day trade that can give you 50 60 people if you’re more patient. You can see that the price rent, rents a hundred and fifty pips. Higher than the next day.

The third the third example that we have here now. Is Bruce engulfing candle. This canvassing strategy which is very, very similar to the Orex exactly the same as the Polish one just we are now obviously talking about bears that are taking control of all of the bulls. And here we have a big uptrend. We have 200 small barn and 50 people move.

From the lows and then you can see here first we have indecision we see some doji candle and then you have a huge massive red bearish engulfing candle. You can see that the push 20 peaks above the previous high because at the bottom and then the only way this is going to end is huge. And a huge push to the downside, you can see that the next scandal alone we are talking about are 50 pips. Again 24 hours of charge so if you decided to enter the price here at 124 30 put your stock was above the previous high that’s 50 people risking. In order to get you only if you just wanted to talk to score. Then you will talk about 50 pips. But again, if you’re more patient and then if you treat your stop losses. We’re talking about, above about much, much bigger gains. As a summary, it’s extremely powerful Candlestick better and the greatest strength of this battery is that you can actually see the trend reversing. And that you were actually we want to actually start thinking about in this particular case selling the low dollar because obviously this does Candlestick as a result of the bear is taking control over the Bulls.

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