Candlestick Engulfing Pattern Tutorial

Japanese candlesticks have one ability that most other chart types don’t – they can show so called “engulfing” patterns. An engulfing pattern is defined as when the open and close price of a bullish or bearish candle are within the range of the open and close price of the candle following them.

When this happens many traders believe it is a sign that a trend has just finished and this is the best possible entry point. That’s the theory but as we know the market doesn’t always answer to predefined rules.

That’s why David Jones includes real examples alongside the theory behind these specific chart patterns. You’ll also see different time frames discussed in terms of how often engulfing candles can happen, as this is an important factor when deciding if you should trust the pattern in different situations.


Download our free mobile apps for iOS or Android:

------------------------------------------------------------------------
📲 Trading 212 on Social Media:

------------------------------------------------------------------------

#Investing #Trading #Equities #trading212

The information contained within the video was correct at the time of recording but may have since changed.

At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

[wbacardi]

Here's a huge tip. most importantly, understand supply and demand zones. check D1 for movement of the market check H4 for entry. SL 15-30 pips and always remember the ABCD's ^^ goodluck to all my fellow traders out there

[AliveforAPurpose]

Seriously who dislikes your videos David??? Thank you for your teachings, they are a real eye opener.

[NoOne-bplb]

Thanks for making this video. I really love this candle pattern because it provides a clear invalidation point. I like to spot them on the lower time frames whenever price comes down to a supply zone.

[vaidhyasiv]

I am also a great fan of engulfing patterns. I experience the bullish engulfing work great only after a considerable fall in the prices and the price action is consolidating, its time to enter a bullish engulfing as it gives great risk to reward trades. The opposite is true for Bearing Engulfing. As the author says, it is really easy to spot and trade which prompted me to like this video. The explanation was really up to the point and no redundant words to confuse. I like this video.

[ttsupra]

This mixed with resistance and support levels is so empowering thank you for the lesson! Just starting out on this journey and i fully believe this will make me better

[ADHD-ENTREPRENEUR]

You are great teeacher, i am watching all ur videos, when i feel ready will start to trade, excited candles :)

[GERCEKUGUR]

Such a simple and effective explenation!
Thank you...

[cryptolex]

Love your videos and educational approach, keep up the good work my friend...

[chunoel]

Sir your explanation works like magic thank you very much I tried your explanation and made profit

[Adam...]

You always give the best and simple explanations thank you :)

[zabisworld]

I think most that say "I love this!" Never did a trade in their life.

While this strategy might work fine when you see a very clear signal, it won't work on some very important moments.

If trading was this simple, everyone would be a trader. I would not use this strategy alone...

[chair]

Tutorial on Bollinger Band, please! BTW, you make the best market tutorials ever imao.

[robertattard]

Love your style. Clear and easy to follow.

[tannermaxwell]

Candlesticks are still confusing but becoming clearer. Thank you sir!

[cubingwithcarl]

Thanks, really helpful and i've seen that pattern for a while now and that it has reversed then but now I know how to use it!

[-uy]

Wow, I love your technique and way of explanation

[ricardohall]

Very Great and a spectacular brilliant simple and concise teaching.. wow one of the best trader of our time..thanks much👍

[TinyMonsterCat]

nice explanation, nice accent, easy learning. TY!

[thomassalane]

hey pa, I owe you to say I love you. Thanks for your genuine Tutorials. God bess you.

[Chaves_Novo_Quiz]

Simple and good explanation, easy to understand.