🔥Lesson 1/100 - Engulfing Candlestick Pattern in Trading
⭐Concept: Used to identify trend reversals, it typically appears at the end of a trend.
For example: A bullish engulfing candle appears at the end of a downtrend and vice versa.
🔸How to Identify:
- Look at the image or understand that an engulfing candle completely engulfs the previous candle with a body that covers it entirely, and the high-low wicks also need to be covered.
🔹How to Use: After an engulfing candle appears, you can enter immediately or wait to test 1/2 of the body of the candle and then enter. The safe stop-loss point is the wick of the engulfing candle plus an additional 1/3-1/2 of the body of the candle (to avoid liquidation).
The Engulfing Candle is considered a condition for entering trades or identifying trend reversals depending on individual perspectives and analysis methods.
I invite everyone to read and refer to this series. I hope to receive feedback and suggestions to improve this series of lessons. It helps everyone equip themselves with more knowledge to trade better.


