What to do when encountering a strong engulfing pattern #K线 ?
Actually, there are three ways, depending on whether you want 'cost-performance' or 'certainty'.
1. Limit order: Place an order in advance at the halfway point (50%) of the body of the engulfing candlestick. The advantage is high cost-performance, but you might not be able to fill the order.
2. Enter after confirmation of the transaction: Wait until the engulfing candlestick closes or the next candlestick opens to enter, pursuing certainty, but the price is usually worse.
3. Wait for a breakout below: Only enter after the price breaks below the low of the engulfing candlestick. This is the most conservative approach, suitable for waiting until the trend is clear before taking action.
It is difficult to achieve both 'cost-performance' and 'certainty', so the core issue is not which method is better, but whether you can accept drawdown and whether you can wait for confirmation.