Are there any specific patterns or formations that often follow engulfing red candles in the world of digital currencies?

1 answers

• Nov 29, 2021 · 3 years ago
  At BYDFi, we have observed that engulfing red candles in the world of digital currencies often lead to specific patterns and formations. One such pattern is the descending triangle, which is formed by a series of lower highs and a horizontal support line. An engulfing red candle within this pattern can indicate a potential breakdown and continuation of the downtrend. Another formation is the ascending triangle, which is formed by a series of higher lows and a horizontal resistance line. If an engulfing red candle occurs within this formation, it could suggest a potential reversal and continuation of the uptrend. It's important to remember that these patterns and formations should be used as part of a comprehensive trading strategy and not relied upon solely for making trading decisions.
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