I do not want to write about the bullish engulfment like the way everyone has done over the years. I want to share few bullish engulfment tips and tricks that will make a difference. That is the fractal bullish engulfment.
Are you ready? Let's get started.
What Is A Fractal Price Structure?
It is a price structure that keep repeating itself almost exactly or with little changes on different times frame.
It is usually completed on one time frame before copying and pasting itself all over the place. As one can see, this is great because one can just look at what has happened before, and use it as a roadmap. Indeed, a bullish engulfment can become fractal.
Really, it is a predictive fractal pattern.
For example, a bullish engulfment is completed on the monthly chart. If it is a fractal bullish engulfment, one can start seeing some baby bullish engulfment patterns on the daily, hourly and 10M charts and other time frames.
One wants to identify which pattern is fathering the other baby fractal patterns. Sometimes, it could be a 15M or 4H or daily chart's bullish engulfment that turns fractal.
Trading Fractal Bullish Engulfment
The best fractal bullish engulfment are those that are formed on the lower times frame, and begin to spread onto other higher time frames.
For example, a distinctive bullish engulfment is in place on the 15M chart. Day traders spot it and trade it. After few hours, it shows up on the 4H chart.
Well, one will switch to the fifteen minute chart and note down exactly the price structure that ensued after that bullish engulfment. There is a high chance that similar or almost the same price structure is birthed after that 4H chart bullish engulfment.
One is effectively trying to forecast the next price move on the 4H chart by using the 15M chart. Furthermore, the same bullish engulfment can subsequently copy and paste itself onto the weekly and quarterly charts.
A predictive bullish engulfment can begin to spread from the hourly chart, then daily and monthly chart. That is also great because one has already seen how it was played earlier. One will get ready without assuming anything because anything is possible. One will surely have an edge if they play it exactly as they did before.
Alright, I will keep this article short without diluting it. I would like to remind traders one more time, please check the links belows