Unlike the Engulfing Candlestick pattern this combination of consecutive candlesticks is found a bit more often and are considered more unreliable. Traders look for these formations as confirmations of larger trends, especially if they are around price levels already identified as support or resistances.
David demonstrates the theory behind this pattern and showcases it in real chart examples that also have different levels of success.
Its equivalent pattern, perceived as a bullish signal – the piercing pattern – is also covered in this video. It is essentially the same pattern but this time the candles are oriented upwards and the second one covers the 50% price level of the previous one.
Have any questions or suggestions for future videos? Comment below and we’ll do our best to get back to you.
Visit us at https://trading212.com
Download our free mobile apps for iOS or Android:
https://trading212.com/GetTheApp
————————————————————————
📲 Trading 212 on Social Media:
Tweets by Trading212
https://www.facebook.com/Trading212
https://www.instagram.com/trading212
@trading212
https://community.trading212.com
————————————————————————
#Investing #Trading #Equities #trading212
The information contained within the video was correct at the time of recording but may have since changed.
At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.