Engulfing Candles, due to their distinct characteristics, provide potential reversal signals for Forex traders
Here’s how to spot and trade them... Bullish Engulfing Candle: (Chart example) 1) Down Trend 2) Bearish Candle 3) Open At Or Below The Previous Close 4) Bullish Candle 5) Close At Or Above The Previous Open 6) Close Preferably Near The High
Aggressive Trader- Market Order With Stop Below Engulfing Candle and Conservative Trader- Set Buy Order When PA hits it Above Engulfing Wick With Stop Below Engulfing Candle. Yes, would be revered for a Bearish Engulfing Candle setup.
Bearish Engulfing Candles: 1) Up Trend 2) Bullish Candle 3) Open At Or Above The Previous Close 4) Bearish Candle 5) Close At Or Below The Previous Open 6) Close Preferably Near The Low