Getting to know trading with engulfing candle patterns?

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In trading there are many candlestick patterns that you can find. Candlestick patterns themselves have a variety of shapes and types. One of them is like the Engulfing Candle pattern. This pattern, you will often find when you trade with a daily timeframe or at a lower timeframe.



The pattern of this Engulfing Candle is arguably very easy to observe. In addition, Engulfing Candle also has a high probability of trading, especially in a trending market. Engulfing Candle consists of two types of patterns namely the Bullish Engulfing pattern and the Bearish Engulfing pattern.

This Engulfing pattern will be more valid, if it has a short tail or no tail because the long tail of this pattern usually reflects uncertainty in the direction of price movements or a tendency to consolidate. Traders will usually determine the validity of this Engulfing Candle pattern with the length of the tail bar that swallows no more than 20-25%, the overall length of the candlestick's body.

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Bullish Engulfing Pattern
This Bullish Engulfing pattern is a pattern that can be used as an opening for Buy positions. To get more accurate results, make sure the movement of the market when it really is in a state of trending and not in a state of sideaway or consolidation.

If an Engulfing Candle swallows up to 2 or 3 previous candles, it means that the probability will also be higher. This candlestick pattern can usually be found at the end of a downtrend. Bullish Engulfing pattern can be used to detect Reversal at the lowest price level.

Bearish Engulfing Pattern
Bearish Engulfing pattern is a new candle pattern that can be seen at the end of the uptrend. The function of this pattern is as a signal to open Sell positions.

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To recognize this pattern, you can see it by ensuring that the first candle is a Bullish candle or a Doji candle, besides Engulfing candles must be Bearish Candle with a longer body of course. If an engulfing candle swallows 2 to 3 previous candles, it means that the probability will also be higher.

For trading using this Engulfing pattern, it's best if you want to enter a position, it would be better if done after the Engulfing Bar has been formed. The entry level that you can refer to is around the lowest level in the first bar.