DislikedHenzwoter, PA means a valid engulf. Now what is a valid engulf? A valid engulf means an engulf that hasn't reached its target. Imagine this, price is between two FLs, upper FL and lower FL (UFL and LFL). Price came down to hit LFL, bounce up towards UFL, it breaks above the UFL and immediately drop back towards the LFL. Now we ask ourselves, when price broke above the UFL, did also it hit another FL above the UFL? If the answer is yes, then we have to assume that price has hit target so this is not a valid engulf. So when price drop back down to...Ignored
IS it possible to show by a chart or by drawing please ..... it will help me to understand properly & hope some many other people too ..
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