JSE Bullish Engulfing

Weekly Chart

When looking at the weekly chart we can clearly see the trendline holding quite firmly, A reversal to the long side is quite. I’m looking for a long entry on a daily chart.

On 9 September 2020 We a huge bullish engulfing candle.

Bullish engulfing on daily chart

Engulfing quite a number of previous days candle.

Trade mechanics

Trigger: Engulfing candle.

Confirmation: trade above the high of the trigger candle (R118.89)

Direction: Long

Entry: R119

Stop loss: R113.89

Risk: R5.02

Account balance: R2793.36

Max, I’m willing to risk: R83.8 (3%)

Shares: R83.80 / R2.50 = 16.7 (rounding off 17 Shares) 

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