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InformedTrades (December 31, 1969 at 6:59 pm)
Thanks for the comment I am glad you like it. My favorite thing to combine with any chart pattern or indicator is just simple analysis of support and resistance which I draw in on the chart by hand. With this being said to the point where the indicators you mention can help you determine how likely/unlikely a support or resistance level is to hold then yes I could see them adding value. Best Regards, Dave
ForexFrenzy (December 31, 1969 at 6:59 pm)
Hello, good concise video, but I see that some of the weaker engulfing candles (that do not completely engulf the smaller previous candle) the trend ends up not going in the direction of that candle pattern, so using Bollinger or MACD would help avoid getting into these bad trades?
wojtek0000 (December 31, 1969 at 6:59 pm)
this video would be much easier to understand if you would use a pointer to point to exactly the points you are speaking of. im lost.
InformedTrades (December 31, 1969 at 6:59 pm)
Hey iboibo2007, I don't normally look at things as if this happens then this is going to happen but more so if this happens then this is an indication of this. So if the market is very oversold and then on top of this you get a bearish candlestick pattern then I would look for other indications such as support and resistance areas to determine what the appropriate action if any should be. Hope that helps. Best Regards, Dave
iboibo2007 (December 31, 1969 at 6:59 pm)
Dave, if a bearish engulfing pattern happens (and confirmed the next day) when RSI is really low ..say RSI(9)=15..so, one one hand we have a bearish signal but on the other, we know market is way oversold and should bounce back anytime..so what will likely happen? should we expect a bear or a bull? thanks a lot for your time, i just love your lessons and appreciate your help.
InformedTrades (December 31, 1969 at 6:59 pm)
Hi, Many traders will recommend sitting out the first hour of the market, especially if you are new to the market, as this tends to be a highly volatile time in the market where it is easy to get whipsawed. This is especially true in the first 15 minutes after the open. Best Regards, Dave
Fullperson (December 31, 1969 at 6:59 pm)
sometimes I see engulfing bears and bulls when the market opens, are these to be taken as accurate for the rest of the day? or should I wait like 10 minutes after market opens for accurate readings?
investmentspecialist (December 31, 1969 at 6:59 pm)
I agree. All candlestick readings should always be cross checked with the other indicators. I don't hink one should just rely on on type of reading to evetually decide a trade.
InformedTrades (December 31, 1969 at 6:59 pm)
Hi forexchemi, I don't always show the indicator confirmations just in the interest of saving time but in general I think most traders would agree that traders should always confirm trades with multiple pieces of analysis. Best Regards, Dave
forexchemi (December 31, 1969 at 6:59 pm)
Hi Dave, I found that in Bullish Pattern, you used MACD to confirm the signal of Bullish Engulfing, but in the Bearish Pattern, you didn't use any indicator to confirm that signal. So when trading with this patter, should we use any indicator to confirm that Bearish signal or is it a high reliability? |
