Hi there,
The engulfing candle happens when the break-out low of the ABC pattern yields strong continuation momentum in a directional trend. There are minor and major engulfments, but the meaningful ones are the major ones.
An engulf is at the sharp turning points or reversal areas of a trend and should complete the sequence of an Elliot wave and a Wolfe wave at the turning momentum.
1-2-3-4 make ABC, and 5 which would be the (D) wave for the break of 2, it positions the ideal engulfing law candle at the reversal point. Joining this sequence should confirm a complete Wolfe wave making (D) the Wave 2 of our Elliot wave count and we can assume it's a strong bullish low and for that reason a meaningful demand area.
After Wave (IV) price has been in a bullish consolidation phase with lows equal at the 1.26139 level. The price went up to the area of resistance at (B) and retraces within a bullish pressure. Therefore Wave (V) is in development until a lower high below (C) happens.
So this makes 1.26139 and 1.28000 price objectives for a bearish breakout for a desired TP of 1.24070 for a bias of 1.21830.
Currently, the price is bear-neutral that is, it's bearish for the shorter time frames but neutral in
the higher time frame for the current price momentum.
Happy Trading,
K.
The engulfing candle happens when the break-out low of the ABC pattern yields strong continuation momentum in a directional trend. There are minor and major engulfments, but the meaningful ones are the major ones.
An engulf is at the sharp turning points or reversal areas of a trend and should complete the sequence of an Elliot wave and a Wolfe wave at the turning momentum.
1-2-3-4 make ABC, and 5 which would be the (D) wave for the break of 2, it positions the ideal engulfing law candle at the reversal point. Joining this sequence should confirm a complete Wolfe wave making (D) the Wave 2 of our Elliot wave count and we can assume it's a strong bullish low and for that reason a meaningful demand area.
After Wave (IV) price has been in a bullish consolidation phase with lows equal at the 1.26139 level. The price went up to the area of resistance at (B) and retraces within a bullish pressure. Therefore Wave (V) is in development until a lower high below (C) happens.
So this makes 1.26139 and 1.28000 price objectives for a bearish breakout for a desired TP of 1.24070 for a bias of 1.21830.
Currently, the price is bear-neutral that is, it's bearish for the shorter time frames but neutral in
the higher time frame for the current price momentum.
Happy Trading,
K.
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It's fine