EURAUD- The partial reversal.

FX:EURAUD   Euro / Australian Dollar
Identifying the candlestick set up and trade is another vital aspect of Technical analysis . On the daily time frame the price chart of EURAUD has been spotted forming a bearish reversal candlestick pattern called THE BEARISH ENGULFING CANDLE STICK CHART PATTERN.
The bearish engulfing candlestick is one of the more popular and well known candlesticks . It works very well as a bearish reversal, performing that way 79% of the time.
How to spot this candle stick formation:
Number of candle lines should be two. Price trend leading to the pattern should be upward.
Look for a two candle pattern in an upward price trend. The first candle is GREEN and the second is RED. The body of the RED candle is taller and overlaps the candle of the GREEN body (Shadows are unimportant).
The third candle stick is another important one to keep an eye on, as it will give traders a valid entry to open a short position.
A close below the third candle stick is an automatic sell signal.
Breakdown price : 1.61962
Support 1: 1.61347
Support 2: 1.60853
Support 3: 1.60221
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Ideas published should not be referred to as an investment advice.
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