Engulfing

Three white soldiers is a candlestick chart pattern that’s normally associated with a bullish reversal of a trend. It can appear at either minor...

A morning star strategy is used for trading on short swings in a downward trending market. The pattern usually shows up where the market has reached an oversold level.

A harami pattern marks a sudden break in a trend where there’s indecision. At this point the buyers and sellers are closely matched leading the price to hover.

A piercing line is a simple yet useful candlestick pattern to look for when trading short term up and down swings within a price channel.

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.

There are three common price actions that happen at support and resistance. These are 1) price testing, 2) fake outs, and 3) breakouts.

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.