Euro / U.S. DollarShort
Bearish Engulfing Chart Pattern
As noted on EURUSD daily chart - one of the best reversal chart patterns just happened, which is an Engulfing pattern. They can be both Bullish and Bearish Engulfing patterns, but current one is Bearish.
What is an Engulfing Pattern? It is one where the previous candlestick (one noted is long Green candlestick) body is larger then the whole price action of next (one noted is very short Red candlestick) whole candlestick, which includes the wicks/shadows and body.
The location of these candlestick chart patterns are very important too. The long green one's shadow/wick when up to to 1.16000 < which is a psychological number. These are price action number's with either double zero's or this one is better with three zero's. A lot of trader's love to make these numbers Support or Resistance points. Noted that the long green candlestick that hit 1.16000 broke the Bollinger Band indicator, which another bearish sign. The last sign of the appending reversal and change of price action is the RSI which was above above 80 & almost 90, which tells you that the pair is over bought and will change direction. Wish you success in trading & trade with trend.
What is an Engulfing Pattern? It is one where the previous candlestick (one noted is long Green candlestick) body is larger then the whole price action of next (one noted is very short Red candlestick) whole candlestick, which includes the wicks/shadows and body.
The location of these candlestick chart patterns are very important too. The long green one's shadow/wick when up to to 1.16000 < which is a psychological number. These are price action number's with either double zero's or this one is better with three zero's. A lot of trader's love to make these numbers Support or Resistance points. Noted that the long green candlestick that hit 1.16000 broke the Bollinger Band indicator, which another bearish sign. The last sign of the appending reversal and change of price action is the RSI which was above above 80 & almost 90, which tells you that the pair is over bought and will change direction. Wish you success in trading & trade with trend.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.