Hi friends,
Recently I went through a book on candlestick patterns and had some doubts on their usage. Any inputs about these would be appreciated.
We have several reversal patterns like Doji, hammer and engulfing patterns.
When do we act on these?
For ex, in case of bullish engulfing,they need 2 days for forming. That means we should buy on the 3rd day morning? that too only if it opens in the green?
or should we wait for 3rd day eod, to get a confirmation in form a white candle formation (in case of bullish reversal )?
since the 2nd strategy would be a bit lagging, wont we be sacrificing a good chunk of profits before entry itself?
Thanks and Regards
Prashanth
Recently I went through a book on candlestick patterns and had some doubts on their usage. Any inputs about these would be appreciated.
We have several reversal patterns like Doji, hammer and engulfing patterns.
When do we act on these?
For ex, in case of bullish engulfing,they need 2 days for forming. That means we should buy on the 3rd day morning? that too only if it opens in the green?
or should we wait for 3rd day eod, to get a confirmation in form a white candle formation (in case of bullish reversal )?
since the 2nd strategy would be a bit lagging, wont we be sacrificing a good chunk of profits before entry itself?
Thanks and Regards
Prashanth
