AntaresScorpius
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Potential Bullish Engulfing Pattern. 30m Chart
Pattern Analysis
• Formation: A red (bearish) candle is observed, followed by a much larger green (bullish) candle, whose body completely "engulfs" the body of the previous red candle. This indicates that at that point, buyers have overcome seller pressure.
• Context: The pattern forms after a period of sideways/slightly bearish movement. Bullish engulfing patterns are considered more reliable if they appear after a significant downtrend or near important support levels, which is not fully verified here, as the previous trend was uncertain.
• Confirmation: To confirm a trend reversal or a continuation signal, it is necessary to wait for the next candle to close above the high of the engulfing candle. On the chart, subsequent candles show an initial upward movement, but then the price consolidates in a narrow range.
Bullish divergence between the EUR/USD price and the Stochastic Oscillator on the 4-hour chart.
Bullish Divergence Analysis
• Price: On the main chart, lower lows can be seen (the price declines, touching new lows, particularly between late December 2025 and January 2026).
• Stochastic Oscillator: Over the same period, the Stochastic Oscillator (the lower chart) shows higher lows. The indicator lines have risen from the oversold area (below 20) despite new price lows, as seen between January 7th and 9th, where the Stochastic oscillator stands around 20.
• Interpretation: This divergence is a warning signal suggesting a possible slowdown in bearish momentum and a potential trend reversal or strong upward rebound in the short to medium term.
Pattern Analysis
• Formation: A red (bearish) candle is observed, followed by a much larger green (bullish) candle, whose body completely "engulfs" the body of the previous red candle. This indicates that at that point, buyers have overcome seller pressure.
• Context: The pattern forms after a period of sideways/slightly bearish movement. Bullish engulfing patterns are considered more reliable if they appear after a significant downtrend or near important support levels, which is not fully verified here, as the previous trend was uncertain.
• Confirmation: To confirm a trend reversal or a continuation signal, it is necessary to wait for the next candle to close above the high of the engulfing candle. On the chart, subsequent candles show an initial upward movement, but then the price consolidates in a narrow range.
Bullish divergence between the EUR/USD price and the Stochastic Oscillator on the 4-hour chart.
Bullish Divergence Analysis
• Price: On the main chart, lower lows can be seen (the price declines, touching new lows, particularly between late December 2025 and January 2026).
• Stochastic Oscillator: Over the same period, the Stochastic Oscillator (the lower chart) shows higher lows. The indicator lines have risen from the oversold area (below 20) despite new price lows, as seen between January 7th and 9th, where the Stochastic oscillator stands around 20.
• Interpretation: This divergence is a warning signal suggesting a possible slowdown in bearish momentum and a potential trend reversal or strong upward rebound in the short to medium term.
