Bullish Engulfing:
Bullish Engulfing is multiple candlestick chart pattern
which is formed after a downtrend indicating bullish reversal.
It is formed by two candles, the second candlestick
engulfing the first candlestick. The first candle being a bearish candle
indicates the continuation of the downtrend.
The second candlestick is a long bullish candle which
completely engulfs the first candle and shows that the bulls are back in the
market.
Traders can enter a long position if
next day a bullish candle is formed and can place a stop-loss at the low of the
second candle.
The
Morning Star:
The Morning Star is multiple
candlestick charts pattern which is formed after a downtrend indicating bullish
reversal.
It is made of 3 candlesticks, first
being a bearish candle, second a doji and third being a bullish candle.
The first candle shows the
continuation of the downtrend, the second candle being a doji indicates
indecision in the market, and the third bullish candle shows that the bulls are
back in the market and reversal is going to take place.
The second candle should be completely
out of the real bodies of first and third candle.
Traders
can enter a long position if next day a bullish candle is formed and can place
a stop-loss at the low of the second candle.
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