Technical Analysis Practical Case 1 — Bullish Engulfing Pattern Cryptocurrency Exchange Platform

No matter the past,

present, or future,

in the field of investing,

debates and criticisms of technical analysis have always existed.

If you want to become an excellent technical analysis trader,

you should listen more to criticisms of technical analysis,

after all, criticism won’t make you lose money,

but arrogance will.

I want to record and share my successful cases of technical analysis,

to show everyone that technical analysis is effective,

a solid understanding of technical analysis can greatly improve win rates and reduce risk of losses.

The case is as follows:

After the price reaches a new high, it gradually pulls back,

until three star candles gradually stabilize the downtrend,

accompanied by decreasing trading volume,

retesting and stabilizing above the 20-day moving average,

a bullish candle engulfs the previous three star candles’ bodies,

and is accompanied by increased volume,

buying on the day corresponding to $SAHARA .

A few days later,

the stock price quickly surges, forming a large bullish candle,

the next day opens high and moves lower,

the candlestick body is very short,

but the trading volume is high,

indicating heavy selling by some traders,

this is a warning signal,

on the second day (B), continue to observe,

open lower and move lower,

and sell to take profit as it approaches a large bearish candle!