Why The Rich Get Richer. It Is Your CHOICE
What is the difference between the rich vs poor mindset? How do the successful differ from the rest of us?
So many people do not obtain financial freedom because they do not have one thing: the right mindset . Everything starts with how you think about money, wealth, and success. It is not a matter of luck, birth, or connections.
The biggest differences between rich and poor people can be traced back to mindset, outlook, and behavior. The rich and the poor don’t only differ in how much they have in their pocket, but also in how they think. Rich people have a way of thinking that is different from poor and middle-class people.
They think differently about money, wealth, themselves, other people, and life . By doing so, you will have some alternative beliefs in your mind from which to choose. In this way, you can catch yourself thinking as poor people do and quickly switch over to how rich people think.
A positive attitude , focusing on doing the right thing overlooking good, becoming a continual learner and careful risk management are all differences between the rich and poor. This reduces their odds of becoming poor after disaster strikes, and it helps them achieve their financial goals over the long-term.
A rich mindset will tell you to be self-sufficient & build multiple streams of income. It will tell you to build a team of smarter people than you to leverage the efforts of talented people. The mindset of the rich is the most decisive reason why “the rich keep getting richer, while the poor get poorer.” Bill Gates has been quoted as saying, “If we weren't still hiring great people and pushing ahead at full speed, it would be easy to fall behind and become some mediocre company.”
So, which mindset do you have?
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G-money
Why The Rich Get Richer. It Is Your CHOICE
What is the difference between the rich vs poor mindset? How do the successful differ from the rest of us?
So many people do not obtain financial freedom because they do not have one thing: the right mindset. Everything starts with how you think about money, wealth, and success. It is not a matter of luck, birth, or connections.
The biggest differences between rich and poor people can be traced back to mindset, outlook, and behavior. The rich and the poor don’t only differ in how much they have in their pocket, but also in how they think. Rich people have a way of thinking that is different from poor and middle-class people.
They think differently about money, wealth, themselves, other people, and life . By doing so, you will have some alternative beliefs in your mind from which to choose. In this way, you can catch yourself thinking as poor people do and quickly switch over to how rich people think.
A positive attitude, focusing on doing the right thing overlooking good, becoming a continual learner and careful risk management are all differences between the rich and poor. This reduces their odds of becoming poor after disaster strikes, and it helps them achieve their financial goals over the long-term.
A rich mindset will tell you to be self-sufficient & build multiple streams of income . It will tell you to build a team of smarter people than you to leverage the efforts of talented people. The mindset of the rich is the most decisive reason why “the rich keep getting richer, while the poor get poorer.” Bill Gates has been quoted as saying, “If we weren't still hiring great people and pushing ahead at full speed, it would be easy to fall behind and become some mediocre company.”
So, which mindset do you have?
❗️Please, support this idea with like and comment!
Thank will help a lot!
Also, subscribe to my social networks,
the link is below!❗️
CABLE UP !JUST TRY TO AOVOID NOISE LIKE 30 TO 50 PIPS MOVE
TRADE ONLY WHEN BIG PLAYERS ARE ACTIVE
BEAUTIFULL LIQUDITY GRAB AND THEN IT LAUNCHES
AS IVE SHARED THIS ANALYSIS IN PAST GO TO 14TH APRIL 2021
@Lingrid @MAKurniawan PLEASE TAKE A LOOK GUYS : THANKS
BUDDY : @DeGRAM <3
How A Crazy Chart Can Make You Lose Thousands Of Dollars!"Crazy Chart" is the definition for putting so many indicators on your chart. it is one of the big reasons to have bad trades that will hit your stop loss easily. Who promotes those indicators says it helps you indicates the next move for the price, while the real truth about indicators that it follows the price only. Also It completely distracts you from seeing the perfect price action for entering and exiting any trades.
The best advice for setting up your chart :
"keep it as simple as possible" the more simple the chart the clearer vision you will have while chasing the price.
Here is some rules you need to follow to be profitable:
1- use indicators for analyzing the history of the price.
2- don't depend on indicators to show you an entry for a trade.
3- use price action and candlestick formations to enter and exit any trade.
4- work with indicators that shows you the support and resistance area of the price.
Lastly Know That ( there is no indicator that can predict the price next move ) if that indicator exists it will worth THOUSANDS of dollars and will not be available for free.
How To Avoid The Market Makers Stop Hunt Movement As part of the daily movement in the forex market is the stop hunting done by the market makers. They don't mean to hunt the normal and small trader at all, they are targeting the big investors and hedge funds you just happen to be in the wrong place at the wrong time.
As shown in No.1 this huge wick is an obvious stop hunt movement in this case the market makers are hunting the ones entered in the middle or at the end of the uptrend. Lesson learned here
"NEVER ENTER A TRADE IN THE MIDDLE OF A TREND ALWAYS WAIT FOR A RE-TRACEMENT"
In NO.2 after the price gave a good bearish signal ( hanging man candlestick ) it made a a shooting star candle with huge wick to hunt the stop losses. in this case lesson learned here
" WHEN YOU ENTER A TRADE WITH PRICE ACTION MAKE SURE TO PUT YOUR STOP LOSS ABOVE/BELOW IT WITH AT LEAST 20 - 30 PIPS"
In NO.3 when you trade you will see this low (blue line) broken so you would assume that it will continue to the downside and after you enter a sell trade NO.3 will occur. Lesson learned here is "DON'T ENTER AT THE END OF A SMALL TREND AND USE A GOOD BREAK SIGNAL"
And a last tip " TRY TO THINK AS A MARKET MAKER AND ANTICIPATE THE AREAS THEY WOULD HIT AND PUT YOUR STOP LOSS ABOVE/BELOW IT BY 20-30 PIP"
Sceptical indicators, strategies or tools? Thoughts? So this post is a little different - it's not an analysis or really a tutorial. I am looking to see what the community sees as the strangest, craziest, most colourful, most interesting or pointless indicator, strategy or tool?
About 2 years ago I was shown a strategy/technique - I assumed it was complete rubbish, it talks about Lunar dates, cycles. Now although cycles play a role in the market - I wasn't convinced it was powered by the moon. At first, I was very dubious about the concept of what seemed a sceptical idea.
Over the years I have studied Fibonacci, Elliott, Gann, Wyckoff and often see logic to the idea. Now and again something pops up on the radar & I like to explore it. I've tested Algo's and Robots, strategies that claim 97% success rate. You name it and it's possibly sitting in the junk hard drive with my FX/trading pdfs, indicators & videos.
Delta Phenomenon
In the early 80's, Welles Wilder founded the Delta Society International. His purpose was to share the “secret of the order behind the markets.” This order, the Delta Phenomenon, is the basis of all market movement relative to time. All other methods of technical analysis are enhanced by this timing tool. As you will learn, the Delta Phenomenon gives a higher probability of trading success to existing systems. Mr. Wilder states "I have solved the Delta Phenomenon for many different markets over hundreds of years of data and I have never seen a failure in this order."
Now at this point - I'm thinking, why isn't this mainstream or this guy not locked up in a nuthouse?
I had read other Wells Wilder books and found them to be overly simplistic. In that regard, I was not disappointed. Now as I said at the start of this article, I'm not looking to teach the method - it's such a strange concept, I thought there must be other people out there with things they find interesting or pure crazy?
Pitchforks for example - why do they work, how do they work? (not a question, more a statement)
How about Gann? Why and how can Gann techniques plot trend lines for the future?
Master of the Universe - Fibonacci levels - Again, why???
If you look at the dates on the chart above - these are forecasted using the delta technique, in theory, it's trying to predict moves in the market using moon cycles. Blank circles are daily turn points, circles & dots are major moves and the large circles with both, are dates whereby both near and medium dates co-exist.
I am keen to hear what you think? Do you know of the delta phenomenon? Have you used it? What about something else similar? or just something you find interesting or/and random? How about something you are sceptical about?
Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
Don't use current M2 data, it has been discontinued.If you're a analyst that has been using M2, I'm here to let you know the data has been discontinued. However, FRED is still updating the data under a new ticker "M2SL" and "WM2NS". Hopefully tradingview updates M2 with the "WM2NS" data from FRED as that one updates weekly now. Thanks for interacting with the post as it'll be more likely for tradingview to see this post and update the data accordingly. Also thank you tradingview for the hard work and consistent updates to the website and app.
Trend Line & Channel Trading : Where to enter, Where to exit trend line trading seems so obvious and easy, many consider so basic. in this video i am showing you that it is an art and still have many points to learn to make sure your trade will win.
trendline trading :
1- the trend didn't end as long as you are having a h.h & h.l or l.h & l.l
2- when the price touches the trend is where you enter your trade
3- look for a price action candle stick each time you trade the trend line
4- price channels also can be used to trade against the trend direction
if you have any questions right to me in the comments and i will answer them directely
Finding The Breakout Point!So in this short video, I show you how to use a pennant style pattern to find a "Possible" Breakout point. This small breakout was a 6% move. Doing this will also help you determine your buy-in areas, so when it hits the support trend line this is the ideal buy-in time.
Ideal Buy In Areas . (When it bounces off support trend.)
How to Become Trading Hamster!Let's consider the typical hamster's behaviour with the example on a chart.
Usually hamsters want to obtain a big profit quickly. They heard about huge opportunities which crypto markets can give and looking for the big pumps.
(1) When the price starts to grow rapidly hamsters usually wait for the confirmation that the pump is real. On this phase hamsters are not believe that the price growth will continue.
(2) The price pump continue and the hamsters execute long position because they afraid to miss the opportunity.
(3) When the price start to go down hamsters panic and exit their long positions. This is the first point when their lose money.
(4) If the price growth continue hamsters think that they made a mistake of early exit and re-enter long position.
(5) But the next candle shows the price drop again, hamsters are nervous but decided to wait the growth.
(6) After the dump the price moves up again and hamsters are happy that they did not close the position.
(7)The price drop again more dramatically. Hamsters close position because of the fear to lose more money.
To sum up, hamsters are driven by emotions, greed and fear. I have already told that to follow the trading strategy is the main way to suppress negative emotions.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
RSI Trendline StrategyHello, traders!
Last time we considered the topic about the technical indicator's types combinations to increase your profit. I promised you to show in details some strategy which applies combination of the indicators.
Let's consider the TREND + OSCILLATOR strategy which uses the EMA and RSI indicators.
First of all we should define the direction of a market trend. The price is above 200 EMA means that the market is in global uptrend. So, we are going to search bullish signs for RSI indicator.
Today we are going to use RSI in a non-standard way. We will search the RSI downtrend lines breakouts. You can see such line on the chart. When the RSI breaks through this line during the price is in the uptrend it is a buy signal. It is great to have another one confirmation. Here we can see that the price bounced off the 200 EMA and exactly after that there was a massive growth.
Why does it work? During the uptrend we often have the consolidation or correction phases. If the RSI is in the downtrend it means that the asset's oversold zone is upcoming, but the market is in the uptrend and bulls dominate. Thus, the money reaccumulates here and when the bear's activity become weak the bulls push the price above rapidly.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
5 Rules For Successful Trading!Trading is simple, but not easy. Traders have difficulty succeeding simply because they are unable to follow clear rules over extended periods of time.
So what are the rules that every trader should follow? (in my opinion)
1- Only invest what you Can Afford to Lose.
Only invest money you can afford to lose, never ever borrow money or take a loan from the bank to invest in forex, or any other type of investment. Because if you do, you will get emotional and make irrational mistakes.
2- 1% Risk per Trade.
We only risk a small portion of our account per trade. We enter with 1% risk per trade (2% max). We enter with a fixed risk per trade, not with a fixed stop loss in pips, nor with a fixed lot size. That’s a common mistake many traders make.
3- Three Confluences Trades. (Technical Edge)
Trading is nothing but a game probability. Moreover, we consider ourselves risk managers not only traders, as the only thing we have control over is "risk". The market can go anywhere. To be on the winning side, we need to have an edge over the market.
One way to put the odds in our favor is by only entering trades when we have at least three confluences/clues, three things telling us to buy or sell lined-up together. One confluence may be random.
For example, we only enter when we have a pattern, support, and divergence. And our rules have to be objective following a well-defined back tested trading plan. I personally use RichTL to make objective (rule-based) technical analysis.
4- 1 / 2 Risk Reward Ratio. (Risk Management Edge)
Our second edge is going to be through risk and money management by entering with a positive risk-reward ratio. Remember, it is not about how many trades you win, what matters is how much you win when you win, and how much you lose when you lose. That’s exactly why we enter with a ½ RRR (or higher), which means we always target double our stop loss. This way even with a 50% win rate, we are still profitable.
5- Emotional stability.
In the trading world, emotions are considered the enemy of traders. Knowing how to control emotions while trading can prove to be the difference between success and failure. When getting into a bad trade, the trader who can manage his psychology well will be able to minimize risk, while the trader who is emotional may make the situation worse.
Therefore, knowing how to control your emotions very crucial in order to succeed in Forex trading.
If you are not feeling well, don't trade.
Remember: You don't have to catch every trade, and you don't have to trade every week.
In fact, our 5 rules are all connected in a way or another.
If you invest money you can’t afford to lose or enter with 10% risk per trade, chances are that you will get emotional and not follow your trading plan objectively by closing your trades before reaching 2R or even entering trades that are not according to your strategy.
In parallel, even if you invest money you can afford to lose and risk 1% per trade, you won’t be consistently profitable if you don’t have a well-defined strategy that gives you an edge over the market technically or through risk management.
In brief, stay away from trading if you don’t have these 5 rules.
Bearish Gartley Pattern - The Warning SignHello, dear subscribers!
Let's consider the most common bearish sign which can be founded on the market - the bearish Gartley formation.
This pattern takes place when there was a huge dump like from point X to point A. After that we have the small bounce from A to B, but the decline continue from B to C. There is a massive growth almost to the the X point level (see point D) at the end of this price action.
It seems that the downtrend is over and bulls dominate again. We can see two signs of the new uptrend beginning: the higher lows (point C is higher than A) and highs (point D is higher than B).
Here is a big danger now. Until the price is not reached the X point level, the bearish Gartley pattern formation can play. If the Gartley pattern have approximately the same characteristics as numbers on the chart there is the high probability of price dump to the price level between points A and C.
Be very careful when you analyze the trend reverse opportunity, this bearish sign can take place.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
The Biggest Mistake I Faced In TradingLet's imagine you decided to become a trader. You are very motivated guy, study technical and fundamental analysis every day. Three months later you have learned a lot of information, know all about indicators and chart patterns.
Using these knowledges you developed your personal trading strategy, backtested it and decided that it's profit and accuracy are appropriate for you.
It is time to make money using this strategy.
The strategy triggered to the current price action and you executed, for example, the long position, but.... the price started to move down and you see that your deposit is decreasing. You say: "Okay, it is normal situation", but subconsciously afraid of the potential loss.
You are monitoring the price action and waiting for the price reverse in the appropriate direction, but the price continue fall down. You decided to close the position before it is too late. You did it. And the next moment the price started to go up. Later you found that your position could be closed in profit, but because of your fear you lost money.
The fear is the worst enemy of the trader. Even if you have the best trading strategy you will lose your money due to your fear. It is not easy to do but just imagine that your trading sessions is just a game and there will no bad effects for you despite your trading decisions. You should believe in your skills and destroy the fear to make money.
This is the biggest problem i faced in trading!
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
Volatility Measurement: Average True Range Hello, dear subscribers!
The market volatility measurement is a very important for the trading strategies constructing. One of the most appropriate and effective way to do it is to use the Average True Range (ATR) indicator.
How to calculate ATR?
First of all we should receive True Range value and calculate it's moving average on 14 periods. The True Range is a maximum of three values:
1. High - Low
2. Absolute value of (High - Previous candle close)
3. Absolute value of (Low - Previous candle close)
Thus, this indicator takes into account not only the current candle prices, also for the previous candle.
How to use it?
This indicator can't help to define the future price action direction but it can be very useful in combination with other indicators. The most appropriate way is to combine it with any oscillator. The oscillator will help you to identify the overbought and oversold conditions or bullish/bearish divergences, as a result you can define the direction of potential price move. The ATR will define the best entry point when the price on the minimum/maximum level.
ATR is greatly triggered on huge pumps and dumps, as you can see on the chart after that price usually has a correction which can be used in your trades.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
Utimate Wickoff Cycle Guide PART 1. ACCUMULATION CYCLE
Wickoff Theory
The Wyckoff theory describes many aspects and rules of trading. The main problem of the theory is the demand/supply balance. It is widely known that this balance is the key reason of some price action on the market. Today we are going to consider the Wickoff Cycle pattern. Let's start with the accumulation one.
WIIckoff Events
Key elements of the theory is the price action, spread and volume. The possible acuumulation cycle Wickoff events are following.
1. Preliminary Support (PS) - price in the downtrend, volume and price spread increase
2. Selling Climax (SC) - price spread is large, all selling volume is absorbed by major investors. Here we can see the long wick bottom
3. Automatic Rally (AR) - when the bearish pressure decreased the bulls became dominant.
4. Secondary Test (ST) - price returns almost to the SC. Used for the bottom confirmation. Volume and spread are much lower than in SC. Can be multiple.
5. Spring - it is optinal event. Occures when the selling pressure is strong but major investors have a greter demand to absorb all this supply
6. Tests - can be multiple. Attempts to re-enter the trading range low. Bullish tests is the less volume with higher lows of the price action
7. Sign of Strength (SOS) - price action along the resistanse usually looks like a triangle or wedge pattern
8. Back-up/Last Point of Support - last low before the uptrend starts
Wyckoff Cycle
Let's consider step-by-step the phases of the Wyckoff cycle.
1. Phase A - the huge downtrend is about to end. We can identify the PS, SC and AR points which form the resistance and support of the trading range.
2. Phase B - price action is in the trading range. The mutiple secondary tests (ST) of the support are possible. During this phase it should be alomost clear that bullish pressure is stronger than bearish.
3. Phase C is optional. There is could be the spring - fake support level breakout, but the price quickly returnes to the trading range forming higher lows.
4. Phase D - the price broke through the resistance and starts consolidate along it.
5. Phase E - massive price pump.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
EDUCATION: PitchforkHello, dear subscribers!
Today we are going to consider a very important tool of trend trading - the pitchfork.
What is the Pitchfork?
The pitchfork is the variant of the trend channel. The difference is that pitchfork has an inner additional channel inside the big main trend channel. The median or the centraline divides these channels in to two parts. It is commonly known that the price usually tends to vary in the upper or lower pitchfork half. Thus the price can often find support and resistance next to resistance, support and central lines.
Support, resistance and breakouts
When the price breaks through the central line the price changes the half of the pitchfork. Sooner or later there will be the massive brakeout as a result of which the price escape the pitchfork. In our example the price broke through the resistance line and found the support above it. If the price has an attempt to return back to the pitchfork and this attempt was rejected we can expect the massive price growth.
Trading
Let's talk about the trading opportunities into pitchfork. We should observe carefully the monents when the price is next to the resistance, support or centraline. If there is a confirmation of the bounce off it the position should be executed in the direction of this bounce.
DISCLAMER: Information is provided only for the educational purposes and should not be used to take action in the markets.
EDUCATION: Rising Wedge PatternHello, dear subscribers!
Today we will continue to consider the chart pattern. The risisng wedge is the topic of this article.
We can see the rising narrowing wedge formation when the scatter of highs and lows is decreasing during the time and price make higher highs and higher lows. There are clear support and resistance lines which have different angles of slope as you can see on the chart
The rising narrowing wedge is usually described as the bearish pattern but in practice it is not always true. In fact the direction of the breakout is the most important evidence for the price movement prediction. In this example we can see the break through the resistance line and the massive price pump.
The breakout can be fake, in that case the price returns back to the wedge. If it is true breakout the price can make an attempt to return back but there is a rejection as you can notice in our example.
DISCLAMER: Information is provided only for the educational purposes and should not be used to take action in the markets.
EDUCATION: Head And ShouldersHello, dear subscribers!
Today we are going to consider the most reliable chart pattern - Head and Shoulders (HS). We ask you to support us with likes, it's not difficult for you and it will help us a lot. Thank you!
The Head and Sholders chart pattern is the most popular pattern and if you use it in correct way it can give you a relevant confirmation for your trades.
First of all we should understand that HS is the reversal pattern. It has a bad perfomance when it is used for the trend continuation definition.
As you can see on the chart the price was in uptrend for a long period of time.
After that two price swings formed the left shoulder and the head, but at the moment of head formation it is not understandable that it is HS pattern.
You should observe the market carefully when the price bounced off the left shoulder top level and started to form the right shoulder.
The HS formation is completed when the price reached the neck line area. This is a nice moment to short. Let's talk about the neck line. It is not obligatory should be horizontal. It can be ascending or descending in the dependence of lows levels between left shoulder and the head and the head and the right shoulder.
DISCLAMER: Information is provided only for the educational purposes and should not be used to take action in the markets.
EDUCATION: Parabolic Growth PatternHello, dear subscribers!
Today's topic is parabolic growth pattern (PGP). This pattern can be applied for the current BTC price analysis.
What is the parabolic growth pattern?
This is a price growth pattern which is formed by the sequence of the bases and price pumps. The base is the price consolidation period after the price growth period.
How to draw it?
The main rule for PGP formation is that the parabola have to touch at least two points from the different bases. You can use arc to apply it on the chart.
How to analyze with PGP?
You can obtain some useful information for the price movement analysis when two bases have already formed and the third base formation is in progress. The main feature of PGP is that when the base 3 is completed the massive growth with a high probability there will be. This growth can be equal to the price change from the beginning of the formation of the parabola, but this growth is much more rapid.
After the last huge price move we should wait the pullback to the base 3 level. This pullback can be sharp or smooth but it is inevitable.
EDUCATION: Ascending TriangleHello, dear subscribers!
Today we will talk about the most popular chart pattern - the ascending triangle. This is commonly known bullish pattern and its correct recognition will help you to earn money.
How to identify the Ascending Triangle?
First of all we should clearly understand that the price now is in global uptrend. The socond one is the uptrend support line. There are should be at least three attempts to break this line down. The last component of the ascending tringle formation is the horizontal resistance line.
How to trade with the ascending triangle?
If the ascending triangle pattern is formed you should identify the breakout point. It is the most difficult part of the analysis because the ideal triangle pattern is rare. We have to find some confirmation of the uptrend continuation with another indicators.
The last question is how to set the take profit. It is usually used the triangle height for the take profit setup.
EDUCATION: Fibonacci Extensions Hello, dear subscribers!
The topic of this article is Fibonacci Extensions.
What is Fibonacci Extensions?
This indicator demonstrates the hidden potential resistance levels for the uptrend and support levels for the downtrend. Here is as example of the uptrend Fib Extensions.
Let's make a reservation right away that the Fibonacci Extensions is not the same as Fibonacci Retracement. The second one is usually used for the pullback levels definition after a huge dump, but not for the potential targets of the uptrend.
How to define the Fibonacci Extensions?
For the levels definition we should find the lowest (point A) and highest (point B) points of the last global swing. After that we should define the lowest point of current swing and the beginnig of the uptrend (point C). The extensions are defined with the Fibonacci numbers and the corresponding levels are 23%, 38%, 50%, 61%, 78%, 100% and 161%. This levels are calculated automatically in the TradingView.
How to use Fibonacci levels?
As you can see on the chart these levels are usually associated with the difficulties for the price to break it through. These are resistance levels and if some of these levels is broken by the price it is likely to see the next Fib level. For example, now the BTC price is testing the 161% Fib level and if it break this level confidently the next price target could corresponds to the next Fib extensions level.
EDUCATION: Engulfing Candlestick PatternHello, dear subscribers!
The topic of this article is the Engulfing candlestick pattern. To be honest the candlestick patterns are almost useless if you use only this. But this is a great trend confirmation, so we will consider engulfing pattern with the Alligator Indicator which was described in one of the previous articles.
What is Engulfing Pattern?
The Engulfing Pattern can be bullish and bearish. The bullish one is the situation when the red candle is engulfed by the next green candle. It is not important if the candleweak was engulfed too or not. This is a subject for thought. Also it does not mean if the only one green candle or two consecutive candles absorbed the previous red candle.
The bearish Engulfing candlestick formation is exactly the opposite situation.
The Strategy
You can search by yourself the ehgulfing patterns on the chart and notice that it generate a lot of fake signals, it means that we should use the indicator for the trend definition. In our example we use the Alligator indicator to do it. As you already know the Alligator has two phases - the sleeping and feeding time. If the sleeping time is over the jaw, teeth and lips of the Alligator become wider. At this point we should find the Engulfing formation to confirm the new trend. You should enter a long position at the point which you can see on the chart.
