📚 ENGULFING CANDLESTICK PATTERN
An engulfing candle is a common candlestick pattern, indicating a potential reversal.
The pattern is formed when a candle is completely "engulfed" by a larger candle in the opposite direction.
Engulfing candles often signal a larger move.
An engulfing candle is a common candlestick pattern, indicating a potential reversal.
The pattern is formed when a candle is completely "engulfed" by a larger candle in the opposite direction.
Engulfing candles often signal a larger move.
A bullish engulfing pattern occurs when a red candle is engulfed by a larger green candle. This suggests that buyers have taken control.
The opposite is true for the bearish engulfing candle, where a green candle is engulfed by a larger red candle.
The opposite is true for the bearish engulfing candle, where a green candle is engulfed by a larger red candle.
There is some disagreement on what constitutes an engulfing candle.
One group argues the candle needs to completely engulf the previous candlestick, including the wicks.
This kind of candlestick is demonstrated in the main tweet.
One group argues the candle needs to completely engulf the previous candlestick, including the wicks.
This kind of candlestick is demonstrated in the main tweet.
Another group is less strict, and argues that merely engulfing the body of the previous candlestick is enough.
This type of engulfing candle was recently printed on the #Bitcoin weekly chart.
This type of engulfing candle was recently printed on the #Bitcoin weekly chart.
All in all, both of these groups have merit.
You can follow the letter of the law, as the first group does;
Or you can choose to be a little more lenient, working with engulfing bodies.
It's best to experiment with these yourself, in order to come to your own conclusion.
You can follow the letter of the law, as the first group does;
Or you can choose to be a little more lenient, working with engulfing bodies.
It's best to experiment with these yourself, in order to come to your own conclusion.
That's engulfing candles for you!
I personally prefer engulfing just the body, as you do not necessarily have to take out the high or low before taking control.
Which camp are you in? Full candle, or just the body?
I personally prefer engulfing just the body, as you do not necessarily have to take out the high or low before taking control.
Which camp are you in? Full candle, or just the body?
As you can see, some people hold rather firm ideas on what constitutes an engulfing candle.
Tread carefully!
Tread carefully!
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