Must Read ArticleA.Day Trading Made EasyB.Wise Stock Investment Tricks C.F&O Trade TechniquesD.Currency Trading TechniquesE.Commodity Trading TechniquesF.Understand the EconomeyDay Trading Made EasyA.Learn intraday tradingB.Day trade using gann methodC.Day trade using fibonacci methodD.Day trade using elliot waveE.Day trade using technicalF.Introduction to decoupling methodDay Trading Made EasyA.My experiment on gann methodB.My experiment on fibonacci methodC.When to do day trade ?D.Why to use our intrday calculator ?E.Why to take our intraday call servise ?F.Best trade plan to win intraday trade ?
1. Bullish engulfing pattern:- the first candle is a black body with low volume and the second candle is a white body with high volume totally engulfing the first candle Example: I have identified the formation of bullish engulfing pattern formation in the price time chart of Tatasteel in June 18th, 2007and June 19th, 2007. Explain the breakout, target and the trend. Bullish Engulfing Example
Date Open High Low Close Total Trd Qty
01-Jun-07 1364 1385 1356 1378.9 1908666
04-Jun-07 1400 1418.4 1390 1406.4 2182423
05-Jun-07 1400 1444.85 1393 1436.5 1808672
06-Jun-07 1445 1454 1381 1389.5 1857287
07-Jun-07 1382 1401.9 1353.25 1360.65 2148431
08-Jun-07 1331.3 1387 1321.3 1356.6 2037482
Analysis: Bullish engulf find pattern form in a down trend. The price trend of Tatasteel was down in the previous time period. above the OHLC data is given for reference. From the above OHLC data if you observe on  19th June 2007 the high is higher than the 18th June 2007 high and 19th June 2007 low is lower than the 18th June 2007 low and the 19th June 2007 closing is higher than the opening which forms a white candle and confirms the formation bullish engulfing pattern. Pattern breakout: on 19th June 2007 the high to low price range is 617-585=32 price units. The 78.6% (i.e. the Fibonacci retracement ratio) of the price range is 25. The pattern breaks out will happen at a price of 617 +25= 642.  As long as the price maintain below this price one can assume that that the throwaway can happen at any stage. Continue