News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • 🇦🇺 Markit Manufacturing PMI Flash (JUN) Actual: 58.4 Previous: 60.4 https://www.dailyfx.com/economic-calendar#2021-06-22
  • 🇦🇺 Markit Services PMI Flash (JUN) Actual: 56 Previous: 58.0 https://www.dailyfx.com/economic-calendar#2021-06-22
  • Heads Up:🇦🇺 Markit Manufacturing PMI Flash (JUN) due at 23:00 GMT (15min) Previous: 60.4 https://www.dailyfx.com/economic-calendar#2021-06-22
  • Heads Up:🇦🇺 Markit Services PMI Flash (JUN) due at 23:00 GMT (15min) Previous: 58.0 https://www.dailyfx.com/economic-calendar#2021-06-22
  • Increased rate bets following June's FOMC rate decision roiled markets, including commodities. Crude oil received a boost on Iran's election, while gold and copper look to incoming inflation data out of the US. Get your market update from @FxWestwater here:https://t.co/3zlDk5ITnw https://t.co/XQfFLxf4Kq
  • US Dollar Outlook: DXY Slides During Powell's Fed Testimony -via @DailyFX Link to Analysis: https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2021/06/22/us-dollar-outlook-dxy-slides-during-fed-powell-testimony.html $DXY $USD #Forex https://t.co/aza7FQRnF8
  • If you follow the emerging market currencies, another liquid EM cross to take note of is $USDZAR. Wavering at 14.5000 which is the 100-day moving average and trendline resistance since the pandemic recovery started. Haven appetite or carry competitor? https://t.co/s4PKXRTgo8
  • Through this past session, $USDCNH has climbed for eight straight trading sessions. Longest stretch since June 28, 2018 and one of the few areas the Dollar's climb has persisted https://t.co/sG2Ej804j5
  • The retailer has created an event that sees its sales surpass Black Friday and Cyber Monday combined. Get your market update from @PeterHanksFX here:https://t.co/LCyr0z9DHh https://t.co/xDTXRH1TEj
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.44% 🇳🇿NZD: 0.43% 🇪🇺EUR: 0.19% 🇬🇧GBP: 0.11% 🇨🇭CHF: -0.03% 🇯🇵JPY: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/CoczW1YszK
How Much of a Candle Needs to be Engulfed

How Much of a Candle Needs to be Engulfed

Richard Krivo, Trading Instructor

Instructor's Response:

 
1) The body of the second candle must engulf the body of the prior candle completely. If the wicks are engulfed as well, even better.
 
2) The stop would go above the highest level to which the pair traded in the pattern...just as you have it. Personally, based on the chart submitted and posted below, the most prudent stop would be above the wick of the candle to left of the one being engulfed.  
 
Yes...that can be a deep stop but the potential for a successful trade is increased. Keep in mind that since this USDCAD pair is in a downtrend on this Daily chart, the fact that the bearish engulfing candle signals a short entry (in the direction of the trend) is a higher probability trade.
 
Regarding stop placement in general...
 
Remember before you enter a trade to always determine how much the loss will be if the stop is triggered. If it is more than 5% of the account size, we advise that the trader pass on the trade.chart 4 22 10

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES