Top 3 Entry Techniques for Trading (Engulfing Pattern) 🕯️📊📈
Based on the image provided, here are the three professional ways to execute a trade using the Bearish Engulfing Pattern:
1. Entry Based on Candle Closure ✅
This is the most conservative approach where you wait for full confirmation.
Method: You enter the trade only after the engulfing (red) candle has completely closed.
Next Step: Open your position at the start of the very next candle.
Benefit: It ensures the bearish momentum is locked in before you risk your capital.
2. Limit Order on 50% of the Engulfing 🎯
This technique is used by traders looking for a better price entry through a retracement.
Method: Set a Sell Limit order at the 50% (midpoint) level of the large engulfing candle body.
Benefit: This provides the best Risk-to-Reward (RR) ratio because your entry is higher, making your Stop Loss (SL) relatively smaller.
3. Entry Based on the Break of the Candle 🔥
This is an aggressive momentum-based entry.
Method: You enter as soon as the price breaks below the low of the engulfing candle.
Benefit: This is ideal for fast-moving markets where the price might not retrace, ensuring you don't get left behind.
Stop Loss (SL) Placement
Regardless of the entry technique, your Stop Loss should always be placed slightly above the high of the pattern (the blue resistance zone) to protect against a reversal.
⚠️ For awareness only.
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This information is provided for educational and informational purposes only.
(NFA)(DYOR).
