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Chapter 9, Part V. Double Deuce – dual candlestick patterns. Page 5

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 15, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Here is how Bearish engulfing looks:

    [​IMG]

    This pattern equals to black Shooting Star in terms of consolidated candle.


    Commander in Pips: The next sweaty couple is our Last Engulfing Top/Bottom pattern.

    #1 Examples of Piercing Pattern, Bullish Engulfing after Doji and “Not Sufficient” Dark Clouds Cover with following confirmation:


    Last Engulfing Top/Bottom


    These patterns look absolutely the same as Engulfing ones, but appears at opposite places. For instance, Last Engulfing Top looks like Bearish Engulfing, but appears on tops, after some up move on market. Last Engulfing Bottom, in turn, looks like Bullish Engulfing, but appears on bottoms.

    Just as with Hammer and Inverted Hammer, that could both appear on bottoms, so as with Bearish Engulfing and Last Engulfing Bottom patterns.

    The consolidated candle of Last Engulfing Top equals to a Hanging Man, while Last Engulfing Bottom – to an Inverted Hammer. So, the market mechanics are the same as with the mentioned single-candlestick patterns.

    Here is the chart, just to clarify this:

    #2 Examples of Bearish Engulfing and Last Engulfing Top – looks identically, but appears in different place.

    [​IMG]

    Pipruit: Oh, it’s much simpler to understand with the chart, thank you. Commander, I have the feeling that all these patterns are just variations of our four single candlestick patterns. Because, if we will build the consolidated candle of any of them, we will get Hammer, Inverted Hammer, Shooting Star or Hanging Man…​

    Commander in Pips: In general, you’re absolutely right. But nevertheless, we have to study all the major patterns, because you have to know how they could look like and how to treat them in practice. If we didn’t talk about it, I think you will not be able to recognize them and what to expect, say, from Dark Cloud Cover.

    Pipruit: Definitely, Sir.​

    Commander in Pips: So, let’s pass to next variation of two candlestick pattern – Harami.
     
    #1 Sive Morten, Dec 15, 2013
    Lasted edited by : Feb 19, 2016
    Hamza Samiullah and fran alvarez like this.
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