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Post of the Day: AUD/NZD

Friday, 21 November 2008 05:52:40 GMT

Written by Richard Krivo, Power Course Instructor

Student’s Question:

Please can you show me "Bullish" or "Bearish Engulfing" patterns in the context of chart!

chart 11 20 08

Power Course Instructor’s Response:

When one candle completely “engulfs” the prior candle, it is indicative of a change in direction of the previous price action. A bullish engulfing candle, therefore, indicates a potential move to the upside while a bearish engulfing candle indicates a potential move to the downside.

Here are some examples on the chart below...

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