What is Bullish engulfing?

First of all, let's talk about the word "Engulfing", Engulfing is when the body of the second candle engulfs or engulfs the body of the previous candle.

The more candles in the Engulfing Pattern, the greater the strength of the price movement.

There are two types of Engulfing: Bullish Engulfing and Bearish Engulfing
  • The Bullish Engulfing Pattern signals a strong bullish impending market.
  • The Bearish Engulfing Pattern signals a strong bearish trend in the near future.
In the chart above, the circled Bullish Engulfing candles signal a subsequent upside price move.

How to apply Bullish Engulfing without trading?

Yes, the Bullish Engulfing pattern is the precursor to a big up move.

So, when you look at the previous and the next candlestick (the candle is forming) you see the Bullish Engulfing Pattern is about to form, you use another indicator to filter (the EMA in the picture) you should wait for the next candle to close. Then, you should enter the order. Place the stop loss at the bottom of the 2nd candle.

The Bearish Engulfing Pattern signals an upcoming trend to decline.

In the chart above, circled the Bullish Engulfing Patterns which led to the subsequent fall in price.

How do apply Bearish Engulfing without trading?

The principle is similar to the Bullish Engulfing pattern, otherwise.

The Bearish Engulfing Pattern is an early signal for a major price decline.

So, when you see the Bearish Engulfing Structure forming, you should wait for the next candle to form and then enter your order. Stop-loss place at the top of the candle.

What is a long shadow pattern?

A long shadow is a length of the shadow from the closing price to the highest or lowest price of the candle. How long is the ball? The shadow twice the size of the body is called long.

Such long shadows often tend to appear at turning points. And the Long shadow pattern often signals big price moves!

How to apply the Long Shadow structure with no trading?

This structure signals a price reversal. If you look at the picture, you can understand how to trade, enter an order after the Long Shadow candle is formed.

The stop loss should be at the top or bottom (the end of the long ball).

What is the Hammer candlestick pattern?

Saying the name is able to imagine the shape of this candle. The body of the candle on one side is the hammerhead and the tail on one side is the hammer handle.

The Hammer candlestick pattern also signals a reversal.

How to apply Hammer structure untradeable?

Like other candlestick patterns, the Hammer also requires patience and agility to recognize the shape of the Hammer and wait for the candle to be formed, and then enter orders. Stop-loss is placed at the shadow (high/low) of the Hammer candlestick.

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