technicalanalyst

The bullish engulfing candlestick pattern signals a shift in market control, indicating that buyers have gained dominance and outnumbered sellers. This pattern typically forms at the bottom of a downtrend and is seen by traders as a potential sign of a market reversal or bottom.

It occurs when a small red (bearish) candle is followed by a larger green (bullish) candle that completely engulfs the previous candle’s body—both its high and low. This pattern suggests strong buying pressure and growing bullish momentum. Refer to the image below for a visual representation.

The bullish engulfing candlestick pattern forms when the market opens below the previous day’s close, but strong buying momentum drives the price upward, closing above the previous day’s open. This signals a shift from bearish to bullish sentiment and is often seen as a potential entry point for long positions.

A 2018 study titled “Technical Analysis and Candlestick Patterns” by the University of Michigan found that the bullish engulfing pattern has a success rate of around 65% in forecasting future price gains. This highlights the value of using historical price action and candlestick formations like the bullish engulfing pattern to assess market sentiment and support smarter trading decisions.
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FARTCOIN is showing a potential bullish reversal setup on the 15-minute chart, supported by key technical signals and order flow data from Bookmap.
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Support and Resistance Levels
The recent low was established around 0.9468 USDT, which acted as a strong support level and potential reversal zone.
Fibonacci retracement levels highlight critical areas for monitoring:
0.236 retracement at 0.9566 USDT
0.382 retracement at 0.9777 USDT
0.786 retracement at 1.0094 USDT
Target resistance near 1.0898 USDT, representing the previous swing high and a potential profit-taking zone.
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A possible Inverse Head and Shoulders formation is visible, which is a bullish reversal pattern, further supporting a long bias.
Volume spikes on the bounce from support confirm buyer interest.
Order Flow and Liquidity in #bookmap
Heatmap data shows strong resting bids and liquidity clusters around the 0.94 to 0.97 USDT range, providing a solid foundation for price support.
Resistance liquidity clusters appear between 0.98 and 1.0 USDT, suggesting this zone may act as a short-term barrier.
Cumulative Volume Delta #CVD has been slightly negative recently but should be monitored for a shift toward buying dominance.
Liquidation data indicates some short liquidation, which may add momentum to the upward move.
Trading Recommendations
Entry Strategy
Consider entering a long position near the 0.95 to 0.97 USDT range, ideally after confirmation of strength such as:
A sustained break and close above the 0.382 Fibonacci level at 0.9777 USDT.
Increase in buying volume and positive shift in order flow indicators.
Stop-Loss
Place a stop-loss slightly below the recent low at 0.9468 USDT to limit downside risk.
Adjust stop-loss dynamically if price action confirms higher lows during the move up.
Profit Targets
Initial profit-taking can be planned near the 0.786 Fibonacci retracement at 1.0094 USDT.
Final profit target is near the previous resistance at 1.0898 USDT, where liquidity clusters suggest selling pressure may re-emerge.
If bullish momentum persists, consider trailing profits to capture a potential breakout above this resistance.
Risk Management and Alerts
Use position sizing to ensure total risk aligns with your trading plan (e.g., risking 1-2% of capital).
Monitor Bookmap order flow and CVD to detect changes in buying/selling pressure.
Set alerts for:
Price above 0.9780 USDT (to confirm momentum).
Price approaching 1.0094 USDT (initial target).
Price approaching 1.0898 USDT (final target and potential reversal zone).
Conclusion
FARTCOIN/USDT is currently presenting a promising long trade opportunity with technical support and volume/liquidity data aligning favorably. Traders should wait for confirmation signals before entry and employ strict risk management to protect capital. Monitoring the order flow via Bookmap will be critical to navigate resistance zones and adjust the trade dynamically.