Custom Search

Candlestcik Pattern 2

Thursday, February 19, 2009 | Labels: , , | |

Advertisement

2)The engulfing-bullish and bearish

A bullish covering candle occurs after a significant downtrend. Note that the covering candle must encompass the real body of the previous candle, but need not surround the shadows. Below you will find an illustration of a bullish covering candle:
A bearish Covering candle occurs after a significant uptrend. Again, the shadows need not be surrounded. Below you will find an illustration of a bearish covering candle:
The power of the covering candle is increased by two factors -- the size of the candle and the volume on the day it occurs. The bigger the covering candle, the more
significant it is likely to be. A large bullish covering candle says the bulls have seized control of the market after a downtrend. Meanwhile, a large bearish covering says the bears have taken command after an uptrend. Also, if volume is above normal on the day when the signal is given, this increases the power of the message.

This are signal are vey useful to doing best in our intraday trading so scrath this signal on memory with experiencing day by day. Sharpen knowledge is only way to go for top.

Canndle Stick Pattrern 1

Sponsored link

0 Comments:

Must Read Book by Every Investor and Trader

 

Blogger Templates by Blog Forum | Distributed by Blogger Blog Templates