baladeva

ForexJ&F Candle Stick Pattern

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The engulfing candlestick patterns, bullish or bearish are one of the easiest of candlestick reversal patterns to identify. Because these candlestick patterns are two-candlestick patterns, they are more valid and are often looked upon as reversal patterns. 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. popualr formation for Price Action Trading

What are engulfing candlestick patterns?

Engulfing candlestick patterns takes two candlesticks to be identified. A bullish engulfing pattern is characterized by a bullish candle whose body, the open and close engulfs the previous candle’s body. Conversely, a bearish engulfing pattern is characterized by a bearish candle whose body engulfs the previous candle’s body.For more validity, if the engulfing candle’s high and low engulfs the previous candle’s high and low, the pattern is found to be more valid. The chart below shows different examples of various bullish and bearish engulfing candlestick patterns. In the example chart below, we also point out a false or an invalid engulfing pattern. It is false due to the fact that the open and close (the body) of the second candle does not completely engulf the open/close of the previous candle.


Why are engulfing candlestick patterns formed?


An engulfing candlestick patterns are usually identified near the tops and bottom. They exhibit extreme market sentiment. In other words, a bullish engulfing pattern tells us that the buyers have overwhelmed the sellers in the market, thus engulfing the entire previous day’s open and closing prices. Conversely, a bearish engulfing candlestick pattern tells us of the sellers overwhelming the buyers and thus indicative of a drop in prices.

Engulfing candlestick patterns can be traded as a reversal candlestick pattern when found at the tops or bottom of a short term trend and validated by support or resistance levels. When an engulfing candle is formed within a trend, they are to be traded as a continuation pattern.
When used with Awesome oscillator this gives a very interesting results and I have observed over 80-90% of ITM             .

How I trade::

See the Awesome oscillator if its above zero line and bar sticks are still in green I see for red candle and engulfing candle. Next candle I enter the trade for the expiry of 1 candle. This has given me nice results.
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Access pls sir
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This looks great! Compliments!

Can you share the code with me so I can test with adding some trend indicators?
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Sir, Please allow me to test this one. Thanks
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Well done... But since most traders are on MT4 & MT5 can you make this into a .exe & .tpl file to be executable..?

You can reach me directly on Telegram @JTFX1 let's talk about... As I have no means of reaching you directly...
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