Trading traps, the reversal secret of the bullish engulfing pattern!

Guys, in trading technical analysis, pattern analysis is an important aspect. Today, let's talk about the seemingly contradictory bullish engulfing pattern (which is actually a bearish signal).

As can be seen from the chart, when the bullish engulfing pattern appears, don't rush to make a judgment. It requires at least 5 price touches to verify its validity. When the supply curve and demand curve intertwine, the price trend shows a series of higher highs (HH) and higher lows (HL). Once a valid breakout occurs, placing the baseline range below the breakout point can help us confirm the volume-price dynamics. What initially appears to be a bullish signal may actually be a prelude to a bearish trend; the key lies in the judgment of the breakout and the volume-price relationship.

Mastering the analysis method of this special pattern can help us avoid pitfalls in trading. However, trading risks are always present, and this knowledge is just for reference. Everyone should exercise cautious judgment during practical operations! #BinanceABCs