ENGULFING PATTERN is often considered a "reversal pattern", but it is not always so, this model can be considered a simple pause of the major trend, and for this reason, we have developed a potential "minimum target". On the chart we published four basic questions, and if you are interested in learning this pattern, subscribe to this idea, because soon we will give an answer to each of them .... but not theoretically, but with practical examples in real time !!
The most beautiful thing of trading?? ...you never finish to learning ....
Thank you for your support and trade with care!
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well, we have received many "I like" and then we see very interested about the explanation for this pattern.
Let's start with the second question: What is the first target? The first target is the projection of the body of the second candle, starting from the closing of the candle itself. It may seem a small movement, but if you use major time frames (weekly or monthly, as we do), the swing becomes interesting.
We often see some traders that publishes theoretical explanations of patterns or models, we want to immediately apply this "theory" to "practice"
Below we have an example in real time that you can follow:
EURUSD on WEEKLY TIME FRAME =================================