Forex Bearish Engulfing Pattern Candlestick Trading Strategy
Forex Bearish Engulfing Pattern Candlestick Trading Strategy:
The Bearish Engulfing Pattern is directly opposite to the bullish pattern. It is
created at the end of an up-trending market. The red body completely engulfs
the previous day’s green body. This shows that the sellers are now
overwhelming the buyers.
Description
The Bearish Engulfing pattern is a major reversal pattern comprised of two
opposite colored bodies. The Bearish Engulfing Pattern is formed after an
uptrend. It opens higher than the previous day’s close and closes lower than
the previous day’s open. Thus, the red candle completely engulfs the previous
day’s green candle.
Criteria
The body of the second day completely engulfs the body of the first day.
Wicks are not a consideration.
Prices have been in a definable uptrend, even if it has been short term.
Prices are at a major level of resistance.
Additional Pattern Enhancements
A large body engulfing a small body.
If the engulfing body engulfs several previous candles.
If the engulfing body engulfs the body and the wicks of the previous day
If the pattern forms after a Doji
Pattern Psychology
After an uptrend has been in effect, the sellers have taken over and moved
the price below where it opened the day before.
In forex a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.
For every trading strategy one needs to define assets to trade, entry/exit points and money management rules.
How to install Forex Bearish Engulfing Pattern Candlestick Trading Strategy?
- Download Forex Bearish Engulfing Pattern Candlestick Trading Strategy.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex strategy
- Load indicator on your chart
How to uninstall Forex Bearish Engulfing Pattern Candlestick Trading Strategy?
To shut down an indicator, one has to remove it from the chart. At that, its drawing and recalculation of its values will stop. To remove an indicator from the chart, one has to execute its context menu commands of “Delete Indicator” or “Delete Indicator Window”, or the chart context menu command of “Indicators List – Delete”.
