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Engulfing Candle

Bearish engulfing on monthly candles on spyI'm not giving investment advice just noting what I am seeing. I don't think people do enough really long term looks at the possibility of where an index is going. This bearish engulfing candle on monthly candles is a bad sign. Yes we are not done with september yet but this candle is pointing to long term decline . Even if in the last week of the month there is a rally that brings this up it will leave us with a dark cloud cover or a hanging man candle. All of which are indicators of an incoming correction and price decline.
AMEX:SPYShort
by d4wn0ff473
Bullish Engulfing on important Support levelHello, traders. The bullish engulfing pattern is a two-candle reversal pattern. The second candle completely ‘engulfs’ the real body of the first one, without regard to the length of the tail shadows. The Bullish Engulfing pattern appears in a downtrend and is a combination of one dark candle followed by a larger hollow candle. On the second day of the pattern, price opens lower than the previous low, yet buying pressure pushes the price up to a higher level than the previous high, culminating in an obvious win for the buyers. Best regards.
Long
by MarketMinds
2
AUDUSD - Bearish Gartley PatternA Bearish Gartley Pattern setup for a shorting opportunity, a bearish engulfing candle or both oscillators have to be in the overbought position and hook down before I'll engage the trade. In normal cases, I won't be even looking at this setup, but as some of you may know I'm very sceptical on Australia Dollar and see that a strong bearish move is lurking in the shadow waiting to happen. With all crashes, I expect an extreme bullish move to happen before it does and the bullish movement might have ended. If not this setup it will be after the next bull run.
Short
by RaynLim
GBP/CHF presenta vela envolvente alcistaEl análisis oriental, o análisis de velas japonesas, como comúnmente se le conoce, puede resultar ser bastante ineficiente por sí solo. No obstante, cuando este es puesto en conjunto con el análisis occidental (indicadores y acciones de precios), y en niveles con alto nivel contextual (extensiones alcistas / bajistas), puede resultar ser una herramienta bastante efectiva. Si bien las velas envolventes pueden presentarse comúnmente, cuando estas se ubican en niveles de importancia, tales como un claro nivel de soporte, estas pueden ser excelentes patrones a operar. En el caso de la libra esterlina frente al franco suizo (GBP/CHF), la vela envolvente se está presentando en torno a los mínimos de junio. Por consiguiente, esto es un indicio de que los compradores han despertado y podrían llevar la acción de precios al alza. No obstante, como en todo, hay que buscar una activación del patrón y su correspondiente invalidación en caso de que la perspectiva sea errónea. Después de todo, no existe análisis que sea perfecto y siempre debemos de tener en cuenta el punto en el que el perfil ha sido erróneo. En este escenario, una operativa por encima del máximo de la vela inicial del patrón (1.17) será una activación ideal, mientras que nuestro umbral de invalidación por debajo del mínimo de la misma vela será el punto ideal (1.16).
Long
by quasarelz
Silver (XAG/USD) Pieces Through Trend Line - Upside AheadHello Fellow Trader! Silver (XAG/USD) Pieces Through Trend Line 4 Hour Time Frame: Strong bullish Engulfing pattern at key Fibonacci level and price. A simple way to find support and resistance in Silver is to plot price intervals of $XX.50 as seen in the labelled examples, and watch and back test price behaviour at these levels for opportunities or clusters with Fibonacci levels or moving averages. Silver has yet to break its All Time High price while Gold has achieved this milestone. Caution: Job numbers in the US were better and expected on Friday, but trade balance figures were poor. How the market interprets the data VS the safe havens in Gold and Silver will be evident in the next week. Key Points: - Price to reclaim 50 EMA - 4 Hour - Bullish Engulfing Pattern - 4 Hour – RSI Range Break - Price holding Fibonacci 78.6% retracement level - Crosses trend line - 1 Hour - RSI range break Key Levels: Support – 26.50, 26.40 Resistance – 50 EMA, 200 EMA, 27.50, 28.50, 29.00 Entry Zone: Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals. Optimal Entry –26.65 Supporting Entry – 26.90 Candle Reversals for entry - 4 Hour Bullish Engulfing - Look for 1 Hour candle reversals for stronger execution The Risk: As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios. If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital. IF: Price breaks below 26.40 – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter. Reward / Reward Targets: Optimal Entry 26.65 – Target 1 28.50 = 3.6x Reward to Risk Optimal Entry 26.65 – Target 2 29.90 = 6x Reward to Risk Supporting Entry 26.90– Target 1 28.50 = 2x Reward to Risk Supporting Entry 26.90– Target 2 29.90 = 3.8x Reward to Risk
OANDA:XAGUSDLong
by tradetheday
SPX: Bull or Bear trap? Let's see...Hello traders and investors! Let’s see how SPX is doing in this Multi Time Frame Analysis (MTFA)! This could be a bull or a bear trap, and here are the most important points to keep in mind. We see a Dark Cloud Cover candlestick pattern under the 21 ema in the hourly chart. This is a bearish sign, and today’s rally could be just a short rally to its resistance and start a further drop, especially if SPX loses this red line at 3349, which would trigger a pivot. Today, SPX filled the gap we talked about yesterday (green line at 3399), and it did a Bullish Engulfing at the black line, which is the pre-coronavirus All Time High (ATH). Now, let’s look for more clues at the daily chart: After SPX lost the purple trendline , the trend got weaker, and when this happens, it just look for more supports. In this case, the 21 ema is holding the price very well, but not before SPX retested its support at the first red line (3353). The movement was very technical, and we already discussed it yesterday, in my previous analysis (link below). Today’s candlestick left a huge shadow under its body, which is very interesting. But before we jump to any conclusions, let’s take a quick look at the weekly chart: Here’s the situation: If the hourly chart triggers a pivot by losing the red line at 3349, it would be a bull trap, and SPX can sink to the second red line seen in the daily chart (3280), or even this purple line, in the weekly chart (3232). The pivot point in the hourly chart is the same point of this week’s candlestick low. To sum up, if the 3349 will be lost, we may see a pullback in the weekly chart. On the other hand, in the daily chart we have a good shadow, and SPX is closing above the 21 ema. If it trades again above today’s candlestick high, it would trade again in bullish territory , above the purple trendline, and the sharper pullback will be ruined. I’m not saying it will go up, I’m not sure if it will have the strength. But we could see some erratic movement next. It would be another bear trap. These are the most important points to keep in mind, and if this idea helped you, please, support it! And follow me to keep in touch with my daily analyses! Maybe you’ll find something helpful around here. Stay safe, and have a great weekend.
SP:SPX
by Nathan_The_Finance_Hydra
11
XTZ: These are the most important points to keep in mind!Hello traders and hodlers! Let’s what XTZ is doing today and do a complete Multi Time Frame Analysis (MTFA)! In the hourly chart, Tezos is struggling a lot, as the bears are dominating the crypto. It did lose the purple trendline , which was the first sign the trend was going to get weaker, but now it is doing descending tops and bottoms , a trait of a bear market. Right now, XTZ is doing what it was supposed to do in a bear market: Seeking previous supports . It is very close to the pink line, and the next target would be the blue line around$ 3.21. Beyond this point, there’s the yellow line at $ 3.10. If XTZ closes above the green line, we’ll see some good rection . Let’s see the daily chart: Yes, the situation is bearish for Tezos, as it is still trading under the 21 ema . But the good news is that we have a clear support at the purple trendline, and the red line is another important point. If XTZ closes above this level, it will be a good sign in the daily chart. This is important, because the reaction must start at the hourly chart, by closing above its green line. Then, it might have the strength to close above the red line in the daily chart and do a false breakout from a bearish pivot . All near the support at the trendline. If XTZ is going up, now is the perfect time for a reaction, and we are going to have our answers quickly, in the next few hours/days. Either way, let’s see the weekly chart: Technically, there’s still room for XTZ to drop. It could retest the black line at $ 3.1294, or hit the 21 ema, which is something we don’t see since this bullish engulfing. My opinion: I’m neutral on XTZ, and I’ll only be bullish if we see the reaction mentioned above. I’m skeptical about a further drop to meet its supports at the weekly chart, but I don’t discard this scenario. Therefore, I’m neutral, at least for now. And if this idea helped you, please, support it! And I invite you to follow me to keep in touch with my daily analyses!
COINBASE:XTZUSD
by Nathan_The_Finance_Hydra
14