moonchild
VIP Contributor
As a forex trader, I know how hard it is to navigate the world of forex trading because I have been there, especially as a beginner. One thing that is a must for every trader is being able to read candlestick patterns. These patterns provide more light into market trends, allowing traders to make more informed decisions before entering a trade. In this post, I want to introduce you to two powerful candlestick patterns that every forex trader should know.
The first pattern is the bullish engulfing pattern. This pattern occurs when a small bearish candle is followed by a larger bullish candle, with the bullish candle fully engulfing the bearish one. This pattern signals a potential reversal of a downtrend, making it a good opportunity for traders to enter buy positions.
The second pattern is the bearish engulfing pattern, which is the opposite of the bullish engulfing pattern. It occurs when a small bullish candle is followed by a larger bearish candle, with the bearish candle fully engulfing the bullish one. This pattern signals a potential reversal of an uptrend, making it a good opportunity for traders to enter sell positions.
Incorporating these two candlestick patterns into your trading strategy if you have will greatly improve your chances of success in trading.
The first pattern is the bullish engulfing pattern. This pattern occurs when a small bearish candle is followed by a larger bullish candle, with the bullish candle fully engulfing the bearish one. This pattern signals a potential reversal of a downtrend, making it a good opportunity for traders to enter buy positions.
The second pattern is the bearish engulfing pattern, which is the opposite of the bullish engulfing pattern. It occurs when a small bullish candle is followed by a larger bearish candle, with the bearish candle fully engulfing the bullish one. This pattern signals a potential reversal of an uptrend, making it a good opportunity for traders to enter sell positions.
Incorporating these two candlestick patterns into your trading strategy if you have will greatly improve your chances of success in trading.
