Last Engulfing Candles: Observations of a Chartist
I've mentioned these before .. and now that I'm looking at two live one's I thought I'd mention it again.
Engulfing candles are candlestick patterns that occur at either end of a trend. If at the bottom, then bullish. If at the top, then bearish. It doesn't matter what color they are.
If the bullish engulfing candle is red, then it is referred to as a 'Last Engulfing Candle' ... same for a white bearish engulfer at the top.
They're tricky ...
Here's Two Examples ... please scroll down for both
Note: I like DPDW here .. but it did lose nearly half it's value after this bearish last engulfing candle - I also like ERFW for more, but it is dipping after the candle formation :(