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LESSON: Bullish and Bearish Engulfing Bars
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[op_liveeditor_element data-style=””][text_block style=”style_1.png” align=”left”]Engulfing Bars are made up of a minimum 2 bar structure.
The Engulfing Bar must do as the title suggests, it must “engulf” at least the previous bar and quite often it will engulf other previous bars as well.
Engulfing Bars tend to be very large Price Action formations but that should not worry you as big bars equal big momentum.
When learning to master the Engulfing Bar pattern, it should be traded ONLY as a reversal and ALWAYS from swing highs and swing lows.
The acronym I will use from here on in is:
- Bullish Engulfing Bar: ‘BUEB’
- Bearish Engulfing Bar: ‘BEEB’
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Module Seven
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