So, I'm all about that Engulfing Candle trading strategy, everyone. It’s my favorite for spotting trend reversals, whether they’re going up or down. Here’s how it goes: I look for these candles that are either much larger or much smaller than the ones before them – that’s my cue. The new candle? That’s the game-changer. Once it arrives, I wait for the next one. If it moves in the same direction as the engulfing candle, I’m ready to go – just waiting for it to close before I make my move. For those interested in exploring advanced trading strategies, the PocketOption platform offers comprehensive insights and tools that can enhance your trading journey.
Algorithm for moves during signal formation:
- Spot that big candle moving in the opposite direction!
Bullish Engulfing Pattern
Bearish Engulfing Pattern
- Wait for a new candle to show up, confirming the trend;
- When the engulfing candle has done its thing, I’m jumping on that opportunity, moving in the same way!
Place a PUT option when I spot that bearish vibe
An uptrend? I see that when prices are making higher peaks and valleys, my friends. It’s all about those waves – climbing up, pulling back, and then climbing again. During an uptrend, I’m sticking with long positions, buying low and selling high.
Gotta remember, the signal from the candle needs to be supported by the next one. If I see an engulfing candle appear after a pullback in the trend, it’s my cue to jump in, because the next wave is often about to surge. But hey, it’s not a sure thing. Trends can continue forever or fall apart quickly. No strict exit point here, just ride the wave.
Squatting Candle Strategy
Frequent trend reversals lead to those squatting candles. They show uncertainty in the market! You’ll see them popping up around key price levels. Could be just one candle or a bunch. A candle with a tiny body and a long shadow? That’s my hint that a trend reversal might be coming.
Algorithm for actions when spotting a squatting candle:
- When I see a squatting candle, it’s time to prepare for a move;
- Wait for a new candle against the trend to appear;
- Last step, once that new candle closes, I'm diving into that trade.
Buying a CALL Option after a squat candle
Place a PUT option when I sense a bearish shift
When the uptrend’s happening, it’s back to those high-swinging highs and lows again. Prices move like a dance - going higher, pulling back, and then rising again. The upward waves are bigger than the pullbacks, meaning I'm usually moving up.
