I am working on engulfing candlesticks. Of course one needs to align the W, D and then the H4 chart (the 3 periods i am using). Question is this:
At what point can I say the macro downtrend has been broken? Looking here at the W chart there has been multiple weeks of bullish activity. This means a bullish trend that lines up with the D and the H4. Now as you can see there has been a bearish engulfing on the W chart. Do you this that this means the uptrend is broken? Are my charts no longer in sync? If i find a engulfing at a critical level, should I ignore it on the lower time frame as the W is not as bullish as it was?
Or on the flip side would you still consider this a bullish setup that is valid and worth taking? Is this merely a pullback for the USDJPY?
Anyone got any thoughts?