All Forex traders come across the Price Action at some point and this is not a mere chart analysis technique but the entire system for defining the possible future price movement direction. The Engulfing pattern is when the body and shadows of a bar completely engulf the body and shadows of the previous bar.
There are two types of patterns the software detects
What Is an Engulfing Candlestick Pattern?
A bullish engulfing pattern is characterized by a bullish candle whose body, the open and close engulfs the previous candle's body. Conversely, a bearish engulfing pattern is characterized by a bearish candle whose body engulfs the previous candle's body.
This chart shot was taken from cTrader using the Engulfing Pattern Detection Indicator.
Rules of the Engulfing Pattern
- It is required to operate with this pattern on higher timeframes: H4, D1.
- For more refined entry, additional elements of graphical analysis should be applied, such as trendlines, support/resistance levels, Fibonacci levels, other Price Action patterns, etc.
- Use pending orders to avoid premature or false market entries.
- Patterns repeated in flat trading should not be used as a signal for entering the market.
Example Trade Setup for a Bearish Engulfing Pattern
The image below shows a classic example of price reversal with a bullish or bearish engulfing candle pattern, the success rate is higher when the candle is formed as it enters a resistance zone. This indicator can be used with the cTrader Support & Resistance Indicator.
Learn How To Trade Using Engulfing Candlestick Patterns
We do not just provide customers with an indicator to download we also provide educational material to learn how to trade using candlestick patterns.
What Kind of Alerts Are There?
This indicator has 4 different types of alerts to help the trader which is a simple pop-up message on your desktop to an Email, Telegram Bot and SMS text message. The last two provide instant messages so you get informed within seconds of the candle forming.
HOW TO CONFIGURE AND SET-UP YOUR ALERTS
We provide full support and educational material to help you set-up your email, telegram bot and SMS text message accounts so you can start receiving your alerts as soon as possible. There is also a free tool you can use to test that your settings are correct and to help you if you need it.
POP-UP WINDOW MESSAGE
This indicator will also display the classic pop-up window when an alert occurs.
Watch a Video Demonstration
The video has been uploaded to 1080p High Quality, so do not forget to set your U-Tube video quality to 1080p HD.
Duration: 12 minutes
How To Install
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install onto the platform.
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