on the 24 candlesticks entry timing strategy
Hi Long ,
i watched your Youtube video
on the 24 candlesticks entry timing strategy and did not understand it at all.
Please shed more light.
On the 24 Candlesticks Entry Timing Strategy
All the basic things about engulfing pattern
There are more than 100 simple and complex patterns in candlestick charts.
This is a vast knowledge for any trader.
But if they can have the basic knowledge of the most common patterns, they can still survive the flood.
Engulfing pattern is one of the common patterns the traders have to stumble upon everyday in the market chart.
There are two types of engulfing patterns: bullish engulfing pattern and bearish engulfing pattern.
The bullish engulfing pattern is most significant when it occurs after a prolonged downtrend.
The stock or index has been selling off sharply.
On the day of the bullish engulfing pattern, prices will often start the day by falling.
However, strong buying interest comes in and turns the market around.
The bullish engulfing pattern is so named because the open-close range of this candle surrounds or engulfs the open-close range of the previous one.
The bullish engulfing represents a reversal of supply and demand.
Whereas supply has previously far outstripped demand, now the buyers are more eager than the sellers.
Perhaps at a market bottom, this is just short covering at first, but it is the catalyst that ultimately creates a buying stampede.
When analyzing the bullish engulfing pattern, traders have to always be aware of its size.
The larger the candle, the more significant the possible reversal is.
A bullish engulfing candle that consumes several of the previous candles speaks of a powerful shift in the market.
The opposite of a bullish engulfing candle, a bearish engulfing candle pattern will move to test a level above the previous day high,
then after finding selling volume will move sharply downwards, breaking the previous day low.
Again this can be a precursor to a sharp sustained drop in price or trend change.
Because of the possible trend changing effects both of these patterns are very important for the traders.