Candlesticks

A bullish engulfing candlestick can be a useful buy signal. But in order to trade them we have to be able to recognize reliable patterns from the false ones.

If you’d blindly traded the bearish engulfing candle over the past decade, you’d probably have done slightly worse than if you’d traded on a coin flip.

You may have seen there are countless articles on the web declaring engulfing strategies are a sure bet and offer high probability trade opportunities. But does this approach really work? In this article I will do a thorough analysis of the data to prove if this method really stacks up.