Regarding the engulfing pattern, we have three criteria:
1. Before the engulfing pattern can occur, the market must be in a clear uptrend (bearish engulfing pattern) or downtrend (bullish engulfing pattern), even if the trend is only short-term.
2. The engulfing pattern consists of two candlesticks, where the second candlestick's body must cover the first candlestick's body (but it does not necessarily need to engulf the first candlestick's upper and lower shadows).
3. The second body of the engulfing pattern should be the opposite color of the first body. (There is an exception to this criterion, provided that the first candle of the engulfing pattern is a cross. In this way, if a small cross is engulfed by a large white body after a long downward trend, it may constitute a bottom reversal pattern. Conversely, in an upward trend, if a cross is engulfed by a large black body, it may constitute a top reversal pattern)
!!!!!The higher the level, the more effective it is
If in an engulfing pattern, the second body is accompanied by excess volume
During this period of time, if we follow the engulfing pattern to place orders, both long and short orders will be profitable.
I just want to find a failed one or one with a bad profit and loss ratio. This one has it. Also, the hammer line plus engulfing pattern I learned yesterday.$BTC
