@expeditionsworldwide · Post #116 · 05.10.2020 г., 19:21
📈Bullish Pattern - BULLISH ENGULFING A. How to recognice it? • There must be a preceding downtrend. • A shorter red candle followed by a longer green candle. • The green candle opens lower and closes higher than the red candle, completely engulfing it. B. What is the psychology behind? • The red candle implies the control of the bears following a prolonged downtrend. • In next session, the market opens below the low of the red candle, suggesting continuation of the bearish forces. • The bears then lose momentum, the bulls take charge and lead the price up during the session, and eventually manage to close above the high of the red candle. • The bulls have now fully overridden the bears. C. How do we trade it? • Look for the Bullish Engulfing at the bottom of a downtrend. • Wait for the next candle to close above the high of the green candle to confirm the existence of bullish force. • Open a long position upon confirmation. • Place a stop-loss below the low of the green candle. #patterns
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