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Powerful – BUYING Pattern | Buying Strategy (தமிழில்) !!

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Powerful – BUYING Pattern |  Buying Strategy (தமிழில்) !!

Candlestick patterns and what to expect
The candlesticks are used to identify trading patterns. Patterns, in turn, help the technical analyst to set up a trade. The patterns are formed by grouping two or more candles in a certain sequence. However, sometimes powerful trading signals can be identified by just a single candlestick pattern.

Strength is represented by a bullish blue candle and weakness by a bearish red candle.

Full Range Engulfing Pattern (Powerful – BUYING Pattern !!) Its a type of engulfing pattern have more strength !!

The Bullish Engulfing :
The bullish engulfing pattern is a two candlestick pattern which appears at the bottom of the downtrend. As the name suggests, this is a bullish pattern which prompts the trader to go long. The two-day bullish engulfing pattern is encircled in the chart below. The prerequisites for the pattern are as follows:

The prior trend should be a downtrend
The first day of the pattern (P1) should be a red candle reconfirming the bearishness in the market
The candle on the 2nd day of the pattern (P2) should be blue, long enough to engulf the red candle

The Bearish Engulfing :
The bearish engulfing pattern is a two candlestick pattern that appears at the top end of the trend, making it a bearish pattern. The thought process remains very similar to the bullish engulfing pattern, except one has to think about it from a shorting perspective.

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