This is a reliable pattern for those who prefer to catch the bottom price in Olymp Trade so that they can trade an UP and earn profit.
How to identify Bullish Engulfing Pattern
Since this pattern is used to catch price’s bottom, it often appears at the end of downward trend. The pattern includes 2 candles:
Small red candle (1st candle): Price falls at the end of a trend and its decrease is no longer dramatic.
Big long green candle (2nd candle): A strong demand force appears and pushes the price up, creating a long green candle.
Meaning of Bullish Engulfing Pattern
At the end of the downward trend, the seller have already sold all of their products. Therefore, price only goes down slightly and a small candle appears. At the beginning of the next candle, price springs up shortly, “engulfing” the last red candle with a long green candle.
This is a strong demand that the buyers push into the market, for this reason, price springs up. This is also the force that makes market reverse from downward to upward.
Open UP in Olymp Trade using Bullish Engulfing Pattern
Remember: The candle pattern signs the reversal from downward trend to upward trend. It means that when Bullish Engulfing Pattern appears, you should only trade an UP.
If you like short-term, you can observe the chart with 1 minute time frame and buy UP in 5 minutes when you catch the Bullish Engulfing Pattern.
In case you prefer long-term , you can also observe the longer time frame chart, for example: 10 minutes or 30 minutes. When the pattern appears, you should buy Fixed Time Trade in a longer time frame so that your winning probability is higher.
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