Hey hows it going? I just had a question i thought maybe someone could answer.
So when you see an englufing pattern what % of the time would you say a reversal happens ? Im assuming the higher timeframe the stronger the pattern. Is there a rough estimate of the % a reversal will happen when you see an englufing pattern?
This site is OK for statistics like that - ThePatternSite.com. But -
- he used daily charts only
- he used charts from the S&P500 only
- the charts were dated between 1997 and 2007
With these provisos, engulfing patterns come out pretty well.