Student’s Question: Daily downtrend. Breaks thru 38.2% comes close to 50% and continues back down. Does the circle represent a good signal? Bearish Engulfing signal?
Power Course Instructor’s Response: Yes. The area within the black circle is a solid entry signal in the direction of the overall trend on the pair...nice job. Placing a stop above the topmost wick or just above the 61.8% Fib level will complete the job. The bearish engulfing candle, however, is the one that is marked in red.