Pattern name: Bullish Engulfing
Pattern Type : Bullish Reversal
No. of Candles : 02
How to Identify it ?
1)There must be a preceding Downtrend.
2)A short Red candle followed by a long Green candle.
3)The Green candle should opens lower & closes higher than the Red candle.
4)The Red candle should be completely engulfed by the Green candle.
Trading breakouts is a most profitable trading strategy that involves buying or selling an asset after a long period of consolidation.
Confirming breakouts before jumping into a trade is the key task to become a successful breakout trader.
Now lets see about the important key points to consider to confirm such valid breakouts
There are different types...
1)Trading in a triangle pattern
2)Can expect a breakout on either sides
3)Go long only after the resistance breakout
4)Levels are mentioned in the chart
5)Trial your profits as per the risk:reward ratio (generally I use 1:3)
What is Breakout Trading ?
A breakout is a potential trading opportunity that occurs when a share price moves above a resistance zone or moves below a support zone on increasing volume .
For trading breakouts one should be aware of support and resistance . It acts as the backbone of Price Action trading.
What is Support & Resistance ?
Support is a place...
1)Wait for the resistance breakout to take entry.
2)The stock looks good above 272 for intraday
3)candle closing is mandatory for the positional entry
4)Target levels are mentioned in the chart
Happy profit making :)