CONCEALING BABY SWALLOW PATTERN
A thread🧵
In collab with @_krishnasoni
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(1/n)
#StockMarketindia #stocks @kuttrapali26
A thread🧵
In collab with @_krishnasoni
♻️Retweet for max reach.
(1/n)
#StockMarketindia #stocks @kuttrapali26
🔸The concealing baby swallow occurs at the end of downtrends and is a bullish reversal signal. The pattern consists of four candlesticks that are all black (red), and is an early sign that the downtrend is deteriorating.
(2/n)
(2/n)
🔸Trade Entry
The pattern occurs after the creation of the 4th candle – the engulfing; you need to identify a close above the upper body of the engulfing.
It's not imp. that the next candle close above the 4th candlestick, it could take time for the BO pattern to develop.
(3/n)
The pattern occurs after the creation of the 4th candle – the engulfing; you need to identify a close above the upper body of the engulfing.
It's not imp. that the next candle close above the 4th candlestick, it could take time for the BO pattern to develop.
(3/n)
🔸Stop Loss
You should always place your stop loss order below the lowest point of the pattern. This is the area below the lower candlewick of the 4rd candle – the engulfing candle.
(4/n)
You should always place your stop loss order below the lowest point of the pattern. This is the area below the lower candlewick of the 4rd candle – the engulfing candle.
(4/n)
🔸Take Profit
The minimum target of the concealing baby is equal to the size of the pattern.
You need to take the distance between the first marubozu and lower candlewick of the engulfing.
When the price action breaks the upper body of the engulfing, trade is confirmed.
(5/5)
The minimum target of the concealing baby is equal to the size of the pattern.
You need to take the distance between the first marubozu and lower candlewick of the engulfing.
When the price action breaks the upper body of the engulfing, trade is confirmed.
(5/5)
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