Euro Rebounds From Draghi Bottom But You Should Not Be Bullish

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Is the Bullish Engulfing Candlestick a Reliable Pattern?

These can be useful buy signals. But in order to trade them we have to be able to recognize the reliable patterns from the many false ones.

Definition of a Bullish Engulfing Candle

A bullish engulfing pattern appears when a long white candle follows a shorter black candle. The white should completely engulf the bearish (black) candlestick from top to bottom. This means the top of the white candle should be above the top of the black one and the bottom of the white candle should be at or below the bottom of the black candle.

Price Gaps

The bottoms of the candles might be the same if there was no gap between close and open. But if the bottom of the white candle is below the black this means there was a price gap between the close of the black and the opening of the white candle.

That could happen if the market was moving very fast. This could suggest a capitulation as buyers are panicking to close their position.

A gap can also happen, and is likely, if the market closes between the open and the close of the two candles. This would happen over a weekend.

What Does a Bullish Engulfing Mean?

The engulfing pattern means that bulls used the market low as a buying opportunity. A large white candle suggests this was a sudden and decisive shift to bullish sentiment.

It is one sign that market sentiment may have turned bullish. Or at least has during the interval of the candle.

We have to keep in mind though that one candle is just a brief snapshot of the market. Like the other candle patterns, we need to use discretion when using it as a signal to trade on.

When is the Bullish Engulfing Pattern a Reliable Buy Signal?

It’s not enough to trade on a single candlestick just because it happens to be an engulfing pattern. Back testing on forex pairs easily shows this simple kind of strategy doesn’t work.

To create a reliable trading rule we need to look for other indications that sentiment is turning bullish. An engulfing pattern is just one part of the analysis.

Before accepting the engulfing candle as a potential buy signal a trader will look at the following:

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  • Position of candle within the trend: Where is the pattern within the down trend? Does the candle form a deep low? A bullish reversal is more likely if the bearish trend is already oversold. Bullish engulfs are also common once an uptrend gets underway.
  • Size of the engulfing candle: Is the engulfing candle much longer than the average length of the trailing candles? If it is it suggests that sentiment turned bullish quickly and decisively.
  • Support lines: Did the engulfing candlestick rebound from a key support such as a long term trend line or horizontal low? If the lower shadow pierced the support line but rebounded there could be further strong upward momentum because it suggests there was a capitulation.

Checking the above points can help you filter out the weaker cases that may be giving a false signal. To help with the above analysis we use a trendline tool and an engulfing candle indicator.

As an example, take a look at the chart above. It shows the EUR/USD daily chart (D1). The red box outlines a strong bullish engulfing candle.


  1. It’s a strong engulfing candlestick in terms of its size. There’s was a quick flip from bearish to bullish sentiment.
  2. The engulfing candle marks a deep low within the trend.
  3. It pierces a long term trend support line, yet the market rebounds strongly.

In the example, the market is oversold. When sentiment turns bullish, those who are short the market will need to buy back their positions at the earliest. So this suggest some further upwards momentum could be in store.

Waiting for Further Confirmation

With bullish engulfing candles it’s normal to see some pullback right after the pattern forms. If you look at the chart above, the next two candles are bearish. And the market gives back some of the gains.

If you wait for two or three bars to complete, this will help you to assess which side the strength is on. A short pullback can create a better buy opportunity. If the next couple of candles give up more than half of engulfing candle then it’s probably wise to wait.

In the EUR/USD example above the price has to overcome a strong resistance line. A day trader would probably use that as a profit target. A trader with a longer term outlook would probably wait for that resistance line to break through as it does in the next upswing.

Engulfing candlesticks are nearly always there if there is a new trend but there’s a lot that never come to anything. If you want to rely on them or not, or just go by other things like basic support and resistance. You have to use your head….

EUR/USD Only Using Draghi And Yellen As Catalysts

The Euro climbed to its highest level against the U.S. dollar since January 2020 after ECB President Mario Draghi expressed optimism about the Eurozone’s economic prospects in his speech at Jackson Hole on Friday. At least this is the reason mainstream media uses to explain the sudden surge in EUR/USD . In our opinion, though, the best a speech can be is a catalyst to trigger a price move, which has already been set up by the market. To prove our point, we would like to show you the following chart, which was sent to clients before the market opened on Monday, August 21st. Draghi and Yellen spoke at Jackson Hole five days later, on 25th.(some marks have been removed for this article)

We could not have known what Draghi was going to say in advance, so we had no choice but to take a look at the charts of EUR/USD through the prism of the Elliott Wave Principle and see the market’s most likely reaction to whatever Draghi was going to say. This, in fact, is much more important to traders than the speech itself. In that case, while the pair was close to 1.1760, the 30-minute chart made us think the stage was set for an explosive move to a new high, since the pullback between 1.1909 and 1.1662 was a textbook double zig-zag correction, labeled W-X-Y. According to the theory, once a correction is over, the larger trend resumes. Here, the Wave Principle not only allowed us to turn bullish, but also provided a specific stop-loss level to protect us. A week later, the updated chart of EUR/USD below show how the situation developed.

The pair rose to as high as 1.1959 earlier today, while the stop-loss at 1.1662 was never put to a test. As it turns out, EUR/USD was ready to rally a full trading week prior to Draghi’s speech. And while most market participants were eagerly waiting for him to speak, in order to form their opinions, Elliott Wave analysts were already anticipating the good news. So, the next time you find yourself waiting for the news, do not forget to take a look at the charts. The answer to your questions might already be there.

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How to be a bottom: A guide to being penetrated by your partner

Want to try bottoming or just get better at it? Well dear, now you can with this very helpful and practical guide to taking it like a champ. You’re welcome.

Before we get stuck into sticking it in, we always support and suggest safer sex. Read our guide to PrEP, and always use condoms.

A bottom is sometimes referred to as the passive role or ‘pitcher’ (versus a ‘catcher’ or a top), and is the lucky guy that gets penetrated, gets f**ked, takes it up the rear, gets a cock in their ass, the penis in the anus.

We hope that’s a bit clearer now? Great, read on for all the facts and info on bottoming as well as a debunking of all the common myths.

Genetics or personal preference?

But this is just one study. The actual reason why some people and tops and others are bottoms is way more complicated than that.

Stereotypical bottoms

The most common stereotype for a bottom is a younger guy with little body hair, who is on the camp side of the spectrum. But stereotypes must be taken with a pinch of salt and only account for a small percentage of the truth.

The fact is, anyone can be a bottom and we’d encourage trying it if you’re in any way inclined – after all, a man’s G spot is hidden up there and bottoming is a sure fire way to stimulate it.

Yeah, lots of bottoms follow the stereotype above, but lots of bottoms are big beefy daddies, hyper-masculine military dudes and everything in between.

There is no ‘rule’ that governs who should be a top or a bottom. Hey, why not be both? Here’s our guide to being versatile if you want to find out more.

Reasons why people don’t bottom

“It’ll hurt too much, it’ll be dirty, his dick is too big, I’m not gay if I don’t get fucked.” We’ve heard them all before.

The first three, we’ll deal with. The last one, well that’s more of an internalised homophobia issue.

No pain, no gain – does it hurt?

The first time a man has anal sex is often painful. It’s a totally new thing that’s happening to your ass, the muscles don’t know what’s happening and you don’t know how to breathe into the action or how to relax and contract your ass muscles.

But trust us – bottoming gets easier and more pleasurable the more you understand and know your own body.

How can I be a good bottom?

There are some things about being a bottom that make it harder than being a top.

There’s certainly a lot more preparation to do, and it can be a bit bewildering if you’re new to it. But we’ve got it covered.

If you’re scared about things getting dirty, learn how to douche. You can read more about douching here in this general explainer about anal sex, but in a nutshell, it means washing yourself with warm water.

Either with water from the shower (with the shower-head removed), or with a pre-bought douching device, or ‘bulb.’

Diet and exercise

Eating a diet rich in fibre is more likely to make you feel like your bowel movements are ‘complete,’ and therefore more confident about using your ass being clean for f**king.

If you’ve got a hectic lifestyle and daily fibre intake is difficult to fit into your meals, there are a ton of fibre supplements out there to help you out.

If you’re into the gym, do extra squats. You can also practice clenching and relaxing your anal sphincter muscle almost anywhere. Now there’s something to make the daily commute more interesting…

Learning how to take it

We said there was a lot of prep eh? But when it’s actually time to take your partner’s cock, make sure you’re as relaxed as possible.

Do your exercises, and learn to use your ass muscles. When the tip of your partner’s penis starts to enter you, push out your sphincter.

Expand and contract this muscle. Each time you do, you’ll find that his cock will go in a bit more – and most importantly – it’ll go in a bit more easily.

Sexual positions where a bottom leads

Being a bottom doesn’t mean you need to be submissive, or that your Top has to be in control of the situation.

Riding your guy, is a good way to self-manage how you take his dick: how fast, how much, and how hard – it’s all up to you in this position.

ECB’s Draghi: Eurozone needs a full banking union ASAP

European Central Bank chief Mario Draghi has spoken for 45 minutes at today’s Bank of England Open Forum, however, the speech did not include any hints at fresh stimulus measures in the euro area.

Markets can be defined by the instruments traded on them – oil, gold, etc., he started. But they’re also defined by the people who use them. And you need appropriate governance to prevent misconduct – particularly when markets cross borders.

Global trade is more important and interconnected than ever, ECB chief said, with technology means distance between buyers and sellers is no longer significant. The cost of moving capital between borders is near zero now.

“During the crisis, the market for securitised assets was all but destroyed by a collapse of confidence. Lack of oversight allowed excesses to be committed and market abuse to take place. Securities that were previously deemed safe, certainly with some measure of complacency and too much blind confidence, turned out to be very unsafe indeed, and imparted significant losses on their holders.”

Efforts to clean up the asset-backed securities market after the 2008 collapse caused problems. There was “too much opacity” about what had been tied into those products, a threatening breakdown of confidence in the integrity of those who packaged and sold them.

“And the immediate temptation of regulators was to impose punishing capital charges on holdings of asset-backed securities, independent of their individual characteristics, mixing the wheat with the chaff.”

Urging to found a proper banking union in the euro area might be the most important thing from his speech. The union should include a single deposit insurance scheme to protect savers when their bank fails, Draghi said.

“With a single currency the benefits of a single market are commensurately higher. But the costs of the market fragmenting are commensurately higher, too. For countries that share a single currency and a single market, therefore, the case is clear – I would say almost undeniable – for stronger common governance and deeper institutional integration.”

“Today, that means as a priority completing banking union: a fully-equipped single resolution mechanism and a uniform deposit insurance scheme.”

This is a disturbing issue in the eurozone – German taxpayers may be concerned about potentially compensating Greek savers. But Draghi suggests it’s simply too risky to not have such guarantees in place when the next crisis arrives.

He concludes that all markets need proper governance to be really free, especially in a shared currency union:

“Those countries have entered into an irrevocable union, built on the fertile ground of Europe’s common values and history, but also on deep mutual vulnerability. For those countries it is even more important to complete economic and monetary union in all its aspects.”

Although the euro area has some banking union, with the ECB responsible for banking supervisions, it doesn’t yet have a uniform deposit insurance scheme. This is still controlled by national governments.

Mario Draghi’s main message is that politicians need to pool more sovereignty, to make sure their financial markets work better.

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