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Engulfingpattern

NIfty Expiry Day Special Analysis || Hero Zero Trading Day.Good Morning Traders, Nifty done smart recovery in yesterday session and given closing above 19700, and formed a bullish candlestick pattern on daily chart, this pattern is indicating further upside can seen from here. Let me explain a bit about bullish Engulfing Pattern to you guys'. A bullish Engulfing is a two candlestick pattern where in a small red candle is followed by a large green candle that completely covers the previous day's red candle. It is considered a reversal pattern and formed after downtrend. Well i think any dip will be a good opportunity accumulate in downside in nifty. On the Upper side, the resistance is situated at 19750. A clear breakout is necessary to anticipate a substantial rally in nifty. A decisive move beyond 19750 could potentially push Nifty towards 19900 levels. On the downside the support is established at 19550-19600 levels. Important Levels for Nifty:- Strong support zone 19550-19600 Strong resistance zone 19850-19900 Buy above 19767, if levels sustain at least for 15 mints. Targets we can see in upside 19883/19884+ Keep stop loss at 19677 Sale below 19677, if levels sustain at least for 15 mints. Targets we can see in downside 19588/19521 Keep stop loss at 19767 Note:- Hero Zero Trade will be in 2nd half somewhere 1:15pm. So, we will update in afternoon according to price action, so stick with us and follow us to get notity at right time. Till then enjoy but don't overtrade and Always wait for the best entry or levels to execute trades. And always follow strict stop loss to save your capital from unexpected market direction. Disclaimer:- Please always do your own analysis or consult with your financial advisor before taking any kind of trades. Dear traders, If you like my work then do not forget to hit like and follow me, and guy's let me know what do you think about this idea in comment box, i would be love to reply all of you guy's. Thankyou.
NSE:NIFTYLong
by TraderRahulPal
Two Candlestick Pattern - Bullish EngulfingA bullish engulfing pattern is a candlestick pattern that forms when a small Red candlestick is followed the next day by a large Green candlestick, the body of which completely overlaps or engulfs the body of the previous day’s candlestick. Bullish engulfing patterns are more likely to signal reversals when they are preceded by four or more black candlesticks. Investors should look not only to the two candlesticks which form the bullish engulfing pattern but also to the preceding candlesticks. Limitations - A bullish engulfing pattern can be a powerful signal, especially when combined with the current trend; however, they are not bullet-proof. Engulfing patterns are most useful following a clean downward price move as the pattern clearly shows the shift in momentum to the upside. If the price action is choppy, even if the price is rising overall, the significance of the engulfing pattern is diminished since it is a fairly common signal. The engulfing or second candle may also be huge. This can leave a trader with a very large stop loss if they opt to trade the pattern. The potential reward from the trade may not justify the risk. Establishing the potential reward can also be difficult with engulfing patterns, as candlesticks don't provide a price target. Instead, traders will need to use other methods, such as indicators or trend analysis, for selecting a price target or determining when to get out of a profitable trade. Important Points- The Green candlestick of a bullish engulfing pattern typically has a small upper wick, if any. That means the stock closed at or near its highest price, suggesting that the Candlestick Closed while the price was still surging upward. This lack of an upper wick makes it more likely that the next candlestick will produce another Green candlestick that will close higher than the bullish engulfing pattern closed, though it’s also possible that the next day will produce a Red candlestick after gapping up at the opening. Because bullish engulfing patterns tend to signify trend reversals, analysts pay particular attention to them. {Source - Investopedia.com}
BITSTAMP:ETHUSDEducation
by TraderLeVeR