Bullish engulfing. Everyone's favorite candle 🕯
I tested it on 34 coins, 3 years of hourly candles. 49,468 signals.
Here's the funny part: it DOES mean something. After an engulfing, a good entry point shows up 1.5x more often than usual. 29% vs 20%. Stable all three years.
And you still lose money 😅
After fees: −0.30% per trade. With a limit entry on the pullback: −0.23%.
Why? By the time that big green candle closes, a chunk of the move is already gone. What's left doesn't cover the fees.
A pattern can be real and still not be a trade. Count the whole trade, not the picture.
#trading #candlestick #crypto
I tested it on 34 coins, 3 years of hourly candles. 49,468 signals.
Here's the funny part: it DOES mean something. After an engulfing, a good entry point shows up 1.5x more often than usual. 29% vs 20%. Stable all three years.
And you still lose money 😅
After fees: −0.30% per trade. With a limit entry on the pullback: −0.23%.
Why? By the time that big green candle closes, a chunk of the move is already gone. What's left doesn't cover the fees.
A pattern can be real and still not be a trade. Count the whole trade, not the picture.
#trading #candlestick #crypto