the hAnDbook of technIcAl AnAlysIs■ (^) The stoploss is placed at the low of the second candlestick or pattern.
■ (^) A sellstop entry order may be placed at the low of the second candlestick only
if there is evidence that the downtrend is still in effect.
See Figure 14.36.
piercing Line
figure 14.37 A Piercing Line Pattern.
figure 14.36 Bullish Engulfing Formation on the Hourly Chart of EURUSD.
Source: MetaTrader 4