I was a zombie chart watcher. I stared at the screens for hours, trying to understand every indicator – RSI, MACD, Bollinger Bands – and I was still losing money. It was exhausting.
Then I stopped and simplified my strategy. Now, I only look for one specific chart pattern that has allowed me to make some of my biggest gains. It’s the bullish engulfing candle. And it’s as simple as it sounds.
What is this?
This is a two-candle setup that signals a strong shift from sellers to buyers. Here’s what it looks like:
* A small red candle (showing that sellers were in control).
* Immediately followed by a much larger green candle that 'engulfs' or completely covers the previous red candle.
When you see this pattern at the end of a downtrend, it's a powerful sign that buying pressure has taken over and a price reversal (a pump!) might be coming soon.
How I trade it (the 3-step plan)
* Find the pattern: analyze the 4-hour or daily charts of the currencies you are watching. Look for a strong bullish engulfing pattern that appears after a significant price decline.
* Confirm the trend: check the overall market.
* Set your goals: place your entry at the highest point of the green candle or just above. Set a tight stop-loss below the low of the red candle to protect your capital. Your take-profit can be based on the next major resistance level.
It’s not foolproof, but by following this simple and visual strategy, you can filter out the noise and spot high-probability trading setups in just a few minutes.
Are you already using this pattern? What other simple strategies have worked for you? Let me know in the comments! 👇
This is all my life experience that I am sharing today.
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