Best Way To Trade Bullish Engulfing Pattern
In this article, we will take a look at the Bullish Engulfing Candlestick Pattern and how it affects the price chart.
Bullish Engulfing Candle forms one of the reliable price reversal candlestick patterns.
However, it’s a trend reversal candlestick pattern.
Bullish Engulfing candles show traders that the Buyers (Bulls) have taken control of price.
It prepares the mind of the trader that there is a development of a strong Buying force, typically against a current downtrend.
Basically, it forms at the end of a bearish trend.
An example is shown in the image below where the green candle overshadows the smaller
However, the image above shows that the green candle is bigger than the red candle.
The red candle, is on the left side while the green candle is on the right.
For one to trade the Bullish Engulfing candlestick, one will place trade entry at point E, as shown in the image below.
Buy Stop pending order can also be placed a little above the closing price point around point E.
Stop loss point sill be at point SL.
For the purpose of Risk Management, Stop loss point will be at a tiny-pip distance little below the SL area.
Take profit will be twice the total length of the Bullish candle.
The above image shows an example of how a Bullish Engulfing candle forms at the bottom of a bearish trend.
The green candle fully engulfs the red candle before it.
Referral Links; (Volatility Index Broker:…https://track.deriv.com/_WxWzztorkVi2vdm9PpHVCmNd7ZgqdRLk/1/) (Broker: Alpari … https://alpari.com/en/?partner_id=1244646) (Email: email@example.com)