#steve nisson

[stochastic-macd]

Reversal Candlestick Pattern | Revealing The Second Type Of Reversal Candlestick Pattern Learn more.

[dayprotraders]

Improve Fibonacci, fractal patterns, RSI indicator and the Commodity channel index (CCI) trading. Profit from financial markets.

What To Do After One Spots Bearish Engulfment?

If a valid bearish engulfment is completed, one must draw three horizontal lines.   One line is at the high of the bullish candlestick,  the second line will be at the median line and third line at the low.  Those are the preliminary preparations before one begins to trade the bearish engulfment. All those three lines are drawn on the bullish candlestick bar that has been engulfed. One must also check the financials, economic news and perform the Google finance acid test.  The days of just using a bearish engulfment as the only excuse to sell are over.  The bearish engulfment is a warning that the price has a high chance to decline.  It will not continue to decline if there is no fundamental reason to sell. I mean if those that have placed the orders to sell (who created the bearish engulfment) are not serious bears then the subsequent bearish momentum will quickly fizzled out, and the price will bounce up. If one spots or scans for the bearish engulfment candlestick pattern, one can quickly put those stocks onto a bearish watch list. Warning The bearish engulfment pattern is not completed until both candlestick bars are closed.  Both candlestick bars must close on the time frame one has spotted it. Please do not fall into the trap of using an incomplete bearish engulfment candlestick pattern because it will not help.

[quotes-by-dilanka]

The fool in a hurry drinks his tea with chopsticks.

Japanese Proverb

[quotes-by-dilanka]

Deep roots are essential for a tall tree

Japanese Proverb

[triangle2828]

Discover A Simple Candlestick Technical Analysis Get a simple candlestick pattern technical trading method that will help improve your day and swing trading. Improve your price-action trading with candlestick trading tactics. Learn more.