People think candlesticks are simple, and they’re right. But just like a good card game, candlesticks take a minute to learn and a lifetime to master. It’s truly amazing how much information is contained in such a small package.
In this episode, we look at “engulfing lines,” which are yet another very strong candlestick indicator. But to understand engulfing lines, you really have to know your candlesticks. You have to be familiar with the proper candlestick terminology, such as “Real Body.” We covered this in previous TradingTips.com episodes, but if you need a refresher, don’t worry — it’s all in this episode, too.
Reading candlesticks is sometimes like deciphering the Da Vinci Code: There’s a lot more to it than just what initially meets the eye. This video will help you see through the noise and find engulfing lines that you can trade for big profits.
In this episode, you’ll learn:
- About the “Real Body” of a candlestick and how it relates to engulfing lines (0:40)
- The characteristics of a bullish engulfing line (2:00)
- The three “X-Factors” that lead to greater engulfing-line trading success (2:42)
- How to recognize bearish engulfing lines (3:08)
The video also uses simple line-art graphs to demonstrate bullish and bearish engulfing lines. With these examples, you’ll have no problem recognizing the “real thing” when you see it on a stock chart.
Engulfing Lines are very easy-to-spot and highly accurate short-term reversal patterns. You just have to know what to look for. With this video, you’ll have all the information you need to start trading engulfing lines and raking in big profits!
CEO, Wealthpire Inc.
P.S. Next week we’ll look at PPO, the Percentage Price Oscillator, and why many technical analysts are using it instead of MACD these days. Until next week… Good trading!