TUTORIAL

A collection of 74 posts

The Psychology Behind an Evening Star

The psychology behind an evening star pattern reveals a shift in market sentiment from bullish to bearish, usually occurring after an uptrend.

Checklist for an Engulfing Pattern

Three conditions must be met for a pattern to be classified as an engulfing pattern: trending market, engulfing, and opposite colors.

Types of Engulfing Patterns

We can distinguish two primary types of engulfing patterns, each with its own set of subcategories or subtypes.

Engulfing Pattern: Limitations and Criticisms

Though the engulfing pattern can serve as a useful instrument for traders, it's important to be aware of its limitations and the skepticism that surrounds it.