Engulfing Candle Trading Strategy - Engulfing Candle Rules and Types of Engulfing Candle Patterns

Bearish Engulfing Candles Pattern in an Uptrend - Bullish Engulfing Candles Pattern in a Downtrend

Engulfing Candles Pattern is a reversal candlesticks pattern which can be bearish or bullish depending upon whether it shows up at the end of a forex downward trend or at the end of a forex upwards trend.

Bullish Engulfing Candlesticks Pattern - Bearish Engulfing Candlesticks Pattern

Bearish Engulfing Candlestick in an Uptrend - Bullish Engulfing Candlestick in a Downtrend

The color of the first candlestick indicates the trend of the day.

The second candle stick should completely engulf the first candlestick & it should have opposite color.

For Bullish Engulfing the color of the candlesticks should be Blue

For Bearish Engulfing the color of the candles should be Red

Engulfing Candle Strategy - Bearish Engulfing Candles Pattern in an Uptrend - Bullish Engulfing Trading Candlesticks Pattern in a Downtrend

Morning Star Candlestick Pattern - Evening Star Trading Candle Pattern - Engulfing Candle Pattern

Morning Star FX Candlestick

Morning Star Candle Pattern

Forex Analysis of Morning Star Pattern

Morning star is a 3 day bullish reversal candlesticks pattern.

First day is a long black candlestick.

Second day is a morning star which gaps away from the long black candlestick.

Third day is a long white candles that fills the gap.

Filling of the gap & closing of the white candlesticks above the gap is a strong bullish Forex signal.

Forex traders should open a buy trade after market price closes above the gap formation of morning star candle stick pattern. This is the confirmation trading signal of a buy signal generated by this candlesticks pattern.

Evening Star FX Candlestick

Opposite of the morning star

Evening Star Candlestick Pattern

Forex Analysis of Evening Star Trading Candles Pattern

Evening star is a 3 day bearish reversal candlesticks pattern.

The first day is a long white candle.

The second day is the evening star which gaps away from long white candlestick.

Third day is a long black candles that fills the gap.

Filling of the gap & closing of the black candlesticks below the gap is a strong bearish Forex signal.

Traders should open a sell trade once the market closes below the gap formation of evening star candlestick pattern. This is the confirmation signal of a sell signal generated by this candlesticks pattern.