Sive Morten
Special Consultant to the FPA
- Messages
- 18,739
Hi Sive,
What you consider as a target of Engulfing pattern? Length of the whole pattern including shadows, or particular bar? I've checked in Military School, but I didn't find precise rule. Thank you.
Ivan
Hi Ivan,
this is not a rule of thumb, but I usually use whole bar with shadows if shadows are small and if pattern is near perfect with solid bodies.
If one bar significantly greater than the other (as it was on Weekly chart 2 weeks ago), then, I try to find pattern on lower time frame and use approximate length. Unfortunately there is no absolute things here. Treat it as some area +/- 20-25 pips and it will be OK.
Also it is important is any other singificant levels around, since they could become the real target and better to use them as a destination point. So, try to take wide view and compound the details together