CHAPTER 3. PINBAR AND ENGULFING CANDLESTICKS

Imagine you have already drawn support and resistance. Sistem Forex Terbaik What will you do then? You might still remember about what I have said earlier that SnR means reversal. Now my questions are:

1. Will you take an entry right after you find price touch the SnR? 

2. Will you take short (SELL) directly if you find price touch the resistance line?

3. Will you take long (BUY) directly if you find price touch the support line?

4. What if the price doesn’t reverse on that SnR level? Let’s say it breaks it out instead?

Let me explain you a bit. No one can guarantee that the price will reverse when it touches SnR level. Then, Why I said SnR means reversal? Keep reading! :)

We use SnR as Reversal. But “WE MUST HAVE CONFIRMATION” to make sure the price will truly reverse or not. How to confirm it then? Yes we used candle patterns named “PINBAR” and “ENGULFING” candlesticks. 

Note: I Probably stated the definition of Pinbar and Engulfing differently with the the common people. Definition is not our point, but profit is :)

A. PINBAR

Pinbar is a candle stick which has tail longer than the body. The body of the candle shouldn’t exceed 50% length. 

Below are the examples of Pinbar.

Note: We use Pinbar as a confirmation before taking an entry. And we use it as reversal.

B. ENGULFING 

Engulfing candlestick is a candle set up formed by 2 candles, Where the next candle close exceeds the previous one.

Below are the examples of Engulfing candlestick.

Note: We use Engulfing as a confirmation before taking an entry. And we use it as reversal.

C. ENGULFING PINBAR

Engulfing pinbar is a combination of Pinbar and Engulfing. And it is considered as great candle pattern. It is “stronger” than pinbar or engulfing.

Below are the examples of Engulfing Pinbar Candlestick.

In the end, What you need to do is to find those patterns (Pinbar, Engulfing, or Engulfing pinbar) that APPEAR in the Support and resistance area. If you have done it, there is one more step you should complete. Keep going!!! :)

Note: If you have a question related Pinbar and Engulfing candlesticks, please leave me a message through Facebook Group.