Stop Loss: Exit for a 6 pips loss or if the trade lasts more than 1 minute.
In the picture below an example of setup for trade with the candlestick pattern Engulfing Bearish
Candlestick Charting - Vol 13 - Bearish Engulfing Pattern
Forum on trading, automated trading systems and testing trading strategies
Libraries: MQL5 Wizard - Candlestick Patterns Class
Sergey Golubev, 2013.09.11 16:21
The Bearish Engulfing Candlestick Pattern is a bearish reversal pattern, usually
occuring at the top of an uptrend. The pattern consists of two Candlesticks:
Generally, the bullish candle real body of Day 1 is contained within the real
body of the bearish candle of Day 2.
The market gaps up (bullish sign) on Day 2; but, the bulls do not push very
far higher before bears take over and push prices further down, not only filling
in the gap down from the morning's open but also pushing prices below the
previous day's open.
With the Bullish Engulfing Pattern, there is an incredible change of
sentiment from the bullish gap up at the open, to the large bearish real body
candle that closed at the lows of the day. Bears have successfully overtaken
bulls for the day and possibly for the next few periods.
The chart below of Verizon (VZ) stock shows an example two Bearish Engulfing
Patterns occuring at the end of uptrends:
Three methodologies for selling using the Bearish Engulfing Pattern are
listed below in order of most aggressive to most conservative:
An example of what usually occurs intra-day during a Bearish Engulfing
Pattern is presented next.
The following 15-minute chart of Verizon (VZ) is of the 2-day period comprising
the Bearish Engulfing Pattern example on the prior page:
Something Interesting to Read February 2014
Sergey Golubev, 2014.02.02 08:57
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Bearish Engulfing Signal and Shooting Star
The Bearish Engulfing Candlestick Pattern is a bearish reversal pattern, normally happening at the top of an uptrend. It consists of a large block at the end of a trend. The shooting star is similar to the bearish engulfing signal. It consists of a bearish reversal candlestick pattern that normally takes place at the top of an uptrend. The shooting star chart pattern is created when the open, low, and close are roughly the same price.