Engulfing CandleStick
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    Engulfing CandleStick

    Engulfing Candlestick


    The Engulfing Candlestick is the candle that comes in areas of support or resistance to the change of direction and this candle is a phagocyte that the candle which accepted that the body of the candles is bigger than the candle or previous candles and swallows them completely.




    In the previous chart, we note that the The Engulfing Candlestick came at the end of the downward trend and swallowed the previous candle to turn the trend upward, but when it came at the end of the upward trend, it swallowed the rising candles and the trend shifted from upward to downward.


    How to set Target and stop loss:-

    Stop loss: In case if the Engulfing Candlestick is in a bullish direction, the entry will be sold while maintaining a maximum 5-point loss of the top of the candle.

    If the candle comes after a downward trend, the entry is purchased while maintaining a stop loss at the bottom of the candle bottom by 5 pips.

    Note: The Engulfing Candlestick is indicative of who controls the market.

    When a bearish Engulfing Candlestick is formed, this indicates that the sellers are in control of the market.

    When an ascending Engulfing Candlestick is formed, the buyers control the market.

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    Trader cutiekc's Avatar
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    Good information about this candle, but then again, I think a lot of shades has to be added to the use of the candle stick pattern, because we will not actually take it anywhere we have seen it on the market. There has to be some things we look at for in the market. Furthermore, we ought to know that the one that formed at the support and resistance are the ones that should be taken.

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    yes i was not know its name but this candle is really working but not too much from my experience and history, if one candle is down big for long up trend then one more candle just will down, after that market try to move in some flat mode and after that it will mostly go up because this candle make a retrace just not change trend

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    Rookie layigold's Avatar
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    Engulfing candle( bullish or bearish ) is one of the candlestick patterns that provides an opportunity to trade but I need to emphasize that it is not every time that engulfing candle will work out . That is why it is important to place your stop loss 5 pips below the candle . I have seen so many instances where the engulfing candle failed to work out and in my subsequent post i am going to show some charts to support that . You need to consider some things before you consider the validity of an engulfing candle . In the first instance , the market must have been a clear directio for some period of time and engulfing candle that appears at the top or base of the trend might just be a signal that the trend is about to reverse .

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    Quote Originally Posted by naeem555 View Post
    yes i was not know its name but this candle is really working but not too much from my experience and history, if one candle is down big for long up trend then one more candle just will down, after that market try to move in some flat mode and after that it will mostly go up because this candle make a retrace just not change trend
    I don't think that knowing the name matters much in the market as I think the important thing the trader needs is being able to know how well they can make use of the candle stick. I have always known that candle stick is going to be the most reliable method of trading but a lot of practice is going to be needed to be done for the trader to know the right and then best signals of it.

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  6. #6
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    Great data about this light, yet of course, I think a considerable measure of shades must be added to the utilization of the candle design, since we won't really take it anyplace we have seen it available. There must be a few things we take a gander at for in the market. Moreover, we should realize that the one that framed at the help and obstruction are the ones that ought to be taken.

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    Among all the candle stick pattern I have gone through with and then learn, I think the use of this candle makes the market move as expected most of the time. In general, the candle stick patterns always helps traders to take the prediction as expected, You know not all signals will actually work, but with the use of the best candles we have chances of getting higher predictions.

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    Rookie tfs2012's Avatar
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    There are some candle patterns that have a big impact on the market and this is one of those patterns so the trader should really learn about them
    I will add something for trading using this pattern it is best to always put a pending order(buy limit or sell limit) at the opening of the previous candle

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    Trader sniper007's Avatar
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    tfs2012, If I should check your picture with bollinger band, it will show to me that it is not strong enough to take trades based on that. But on the second hand, we can see that the trend has been established already, the market is always moving up, which is another good validation why to take on the bullish bar. This could be regarded as following the trend.

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    Registered user simpleman's Avatar
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    Engulfing candle is one of the good signals to follow in trading the price reversal in a trend, we have bullish or bearish engulfing candle, which is indication that the price is about to reverse upward or downward respectively. but we still need to consider the use of stop loss because market may do anything any time but most of the time the signal do valid.the best trader could do is to trade with money management.

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