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Engulfing Candle

EDUCATION: Engulfing Candlestick PatternHello, dear subscribers! The topic of this article is the Engulfing candlestick pattern. To be honest the candlestick patterns are almost useless if you use only this. But this is a great trend confirmation, so we will consider engulfing pattern with the Alligator Indicator which was described in one of the previous articles. What is Engulfing Pattern? The Engulfing Pattern can be bullish and bearish. The bullish one is the situation when the red candle is engulfed by the next green candle. It is not important if the candleweak was engulfed too or not. This is a subject for thought. Also it does not mean if the only one green candle or two consecutive candles absorbed the previous red candle. The bearish Engulfing candlestick formation is exactly the opposite situation. The Strategy You can search by yourself the ehgulfing patterns on the chart and notice that it generate a lot of fake signals, it means that we should use the indicator for the trend definition. In our example we use the Alligator indicator to do it. As you already know the Alligator has two phases - the sleeping and feeding time. If the sleeping time is over the jaw, teeth and lips of the Alligator become wider. At this point we should find the Engulfing formation to confirm the new trend. You should enter a long position at the point which you can see on the chart.
Education
by Skyrexio
USDCAD - Bearish CrabAs I'm going through my chart, I've spotted a unique long shadow candle on the 1hourly chart(left), not only the candle was long, it just touches the resistance level, you may plot your own chart to see the full story. A pretty cool setup that the software and I both spotted on the 1-hourly chart(right), the harmonic patterns - bearish crab pattern with the bearish engulfing candle(in this case I don't see any major changes on the 1hourly chart in the next 6mins).
Short
by RaynLim
NZDJPY, daily tf, bulls in control for nowHello my friends, Another setup for next week is NZDJPY pairs. As you can see NZDJPY pretty much bullish since breaking above the 5 months flag pattern. For me, there is still further upside for this pair. The measured objective of that 5 months flag pattern was around 800-900 pips in my opinion. We could see NZDJPY continue to the upside until 76-77 area. Long/Buy positons will be in favor for now and we will only look to buy this pair. As you can see price right now consolidating inside a possible bullish continuation pattern right now. This could be a pennant / flag pattern. We will try taking a buy position at 73.35 area for our first buy position. This 73.35 area is our horizontal support and possibly flag/pennat pattern support. EMA-20 are also located near this area so pretty much it will be an area of confluences. As price continue higher and make another pattern which is favorable for bulls, we will add more positions. Buy limit NZDJPY 73.35 Stop loss 73.00 Take profit 75.65 (6.5 R) RR Ratio 1 : 6.5 Use only 1-2% risk Good luck
Long
by HayatoDragonFX
2
SPX: Some Key Points to keep in mind!Hello traders and investors! It’s been a while since my last analysis on SPX, but let’s see how it is doing this Friday! First, it filled the Exhaustion Gap , showing some signs of weakness, and today it lost the black line at 3710, triggering a pivot point that could lead SPX to lower levels. Since the trend is still clearly bullish, a retest of the purple trendline is something we can work with right now, for the short-term. This target makes sense if we look at the daily chart as well: We have a Bearish Engulfing today, and this indicates that the index could drop to the dual-support area around the 21 ema and the blue line (previous top/previous support). So far, I can’t tell that this is a reversal sign because the volume was very low today, meaning that this is not a real sell-off, but people booking profits instead. All we know that this could be the beginning of a pullback to the points mentioned above. Next week we’ll have more info. These are the Key Points for SPX right now. If this idea helped you, consider following me to keep in touch with my daily analyses. And please, support this idea if you liked it! Thank you very much, have a great weekend!
SP:SPX
by Nathan_The_Finance_Hydra
2
Is the US Dollar turning bullish?TVC:DXY On a weekly chart we see a MACD & RSI divergence. But that alone is not enough. We need to see a reversal pattern and/or structure breakthrough. So lets dig deeper: On a 4H chart we see a double bottom, with the second leg being a bullish engulfing candle. Moreover, this is accompanied by a MACD & RSI Divergence. We believe that a confirmation of the engulfing candle + a breakout of the downward resistance lines shown in the chart, could possibly lead to a larger positive trend in the USD. Happy Trading! Share your view on the DXY. Whether you agree or disagree, we can learn from everyone. Macro views are also great!
TVC:DXYLong
by nadavhurwitz
NIO: How far could NIO drop?Hello traders and investors! Nio is dropping today, which makes sense, as we have a Red Friday today, and most indices are dropping around the world. Let’s start our usual Multi Time Frame Analysis . First, NIO is losing the support level at the red line , frustrating the bullish reaction seen yesterday. The purple trendline is a strong resistance, and NIO failed in defeating it. Now there is no other support, but the purple line around $ 38 to hold the price. The purple line is an important support, and it makes more sense if we analyze the daily chart: The purple line is a support since Nov. 10 and was the Piercing Line’s low as well. It seems NIO is going to retest it, but this movement doesn’t seem to be a real sell-off, as the volume is still too low. While the pink line is the most important Pivot Point , the purple line is the most important support level for the short/mid-term . If NIO loses this purple line, it could trigger a bearish pattern seen in the weekly chart. This pattern could be a Bearish Engulfing , and it could make NIO drop again to the 21 ema, around $ 30 again. I wouldn’t be surprised, but I find this scenario too optimistic, as this would be a great opportunity to buy NIO at a cheaper price. Let’s be careful here and watch NIO’s support levels closely. Therefore, remember to follow me to keep in touch with my daily updates on NIO, and please, support this idea if you liked it! Thank you very much. Have a great weekend!
NYSE:NIO
by Nathan_The_Finance_Hydra
35
NIO: Bullish reaction at a support level!Hello traders and investors! Let’s see how NIO is doing right now! Well, the support level we discussed last week at the red line ($ 42.51) seems to be very strong, indeed! NIO retested it on Friday, and today we have a good reaction, which is a good sign. The first hour candlestick could be an Ignition Bar, and the green line at $ 46.30 is a new Pivot Point . The link to my last analysis is below, as usual. The 21 ema is flat, and it seems the price is starting to defeat it. If NIO defeats the green line, it could easily retest the pink line at $ 48.65 again, and this is another key point we all should keep in mind. Let’s look at the daily chart now: The pink line is a Pivot Point in the daily chart, and if triggered, NIO could seek the All Time High again, and possibly defeat it. The Piercing Line pattern is still valid, and today’s candlestick pattern looks like a Bullish Engulfing . If NIO closes this way, we’ll have a very good sign today. Anyway, the purple line is the last support level for NIO, and it is the Piercing Line’s low. So far, there is no reversal sign and we have the start of a good reaction. And if you liked this analysis, follow me to keep in touch with my daily updates! And please, support this idea if it helped you! Thank you very much.
NYSE:NIO
by Nathan_The_Finance_Hydra
5
XAUUSD, 2hr tf, sell ascending trendline bearish engulfing breakHello my friends, For next week i am going to try selling XAUUSD. As you can see, XAUUSD already move to the upside for 800 pips during this past 1 week. Friday candle closed showed that there is some indecision to XAUUSD and usually when this happened, we could expect some retracement of recent impulsive movement. In my opinion, we could expect XAUUSD to continue higher but it will need some retracement on the way to the upside as well. If you look at the 2hr chart, 2 bearish engulfing candles appeared consecutively engulfing previous candles. This mean sellers area pretty much in control of XAUUSD right now for a short time. If we draw a fibonacci retracement for this recent 800 pips rally, there is a possibility price could retrace to 61.8% fibonacci level before it continue to move upwards. Especially since the ascending trendline was broken with a bearish engulfing candle. We could wait around 1844-45 to enter sell or use a pending sell limit order. Sell limit XAUUSD 1844 Stop loss 1850 Take profit 1797 (7.8R) RR ratio 1 : 7.8 Use 1-2% risk only Good luck
OANDA:XAUUSDShort
by HayatoDragonFX
1
EOS- Big three Dapp platformsEOS, along with ETH and TRON, is one of the three most popular decentralized platforms in terms of amount of dapps, # of users and overall transaction and volume. It is down more than 80% from ATH and is one of the top 10 most popular coins on CB. However, there doesn't seem to have any short-term catalyst for price momentum according to derivative data and fundamental analysis. I think it will be nice to slowly scale in in the demand zone and have a small percentage of your capital allocated to EOS. Set the stoploss below the daily POC. Just my two cents. Not the investment advice.
by Libratus
2