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.
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 higher risk because of leverage.
I thank you and appreciate your time and value.
great stuff David!
Great Videos Thanks
when should i buy and sell a stock in engulfing bullish or engulfing bearish?
You sell a stock if you have a bearish engulfing candle as opposed to bullish
excellent presentation
Great fan of you also.. Thanks
what is name of your trading platform in this video?
Hello Siavash, the app is Trading 212. Check it out for free with virtual money at http://www.trading212.com/en/Free-FOREX-Practice-Account-GBP. Available across all devices – web app running directly in your web browser of choice, as well as free native mobile apps for iOS and Android at your disposal.
i really like your videos pls tell where should we enter for short trade
thank u love from Dhaka
Amazing 👍
I’m confused at 11:03 u said the green candle does not in gulf the red, but that red candle was basically a hammer so that’s a reversal pattern
Inverted hammer *
Very powerful candlestick….I really love it….thanks💪💪💪💪
Correct me if I’m wrong, you said if the stock is in a uptrend but a bearish pattern appears the next day to put your stop over the highest point of that pattern? why?
Thanks
what is the best time frame to see this pattern sir .
Hello Yusuf, you may watch this video about choosing a time frame on the chart – https://youtu.be/UClWf-g1oD0.
What makes people think candlesticks mean something.
Lovely thank you 😊 please use different colors for the different candle sticks
Bullish and bearish engulfing are two day reversal patterns.. Can we see this in intra day chart.. I mean if I open Monday chart from morning 9 am to 3.30pm closing time.. Can I see this candlesticks patterns…
hello what trading site did you use?
Hi Mark, it is Trading 212. You may check it out for free with virtual money – http://www.trading212.com/en/Practice-for-Free-GBP.
Sir Hind language spike video
great content
Thanks I am learning a lot from you.More candlestick pattern guides please.
Its Me Liezel Hi
hey pa, I owe you to say I love you. Thanks for your genuine Tutorials. God bess you.
At Min 5:08, don’t you mean “bearish engulfing” ? at the beginning of a downwards trend…
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.
it was so nice
Hi, great video once again; what trading platform are you using here ?
Thanks this helps a lot!
Nice video , But What should be the time horizon for intra day trading
nice explanation, nice accent, easy learning. TY!
How much does premarket matter?
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!
Thank you, David.
thanks
Many thanks to the trading 212 team for the excellent videos posted. Have a question for you guys, does the engulfing pattern needs any increase in volume for it to be valid? Thanks again
it is a bonus but not a criteria
Is this your favorite strategy?
What about 22may bearish engulfing pattern ?
Which platform do you use to mock up have multiple charts open at once?
thanks
does the wick in this sort of pattern matter much?
the close of the candlestick is more important than the wick
8:25 so is that a bearish engulfing? right?
not so emgulfing but yeah if you close one eye its bearish engulfing
I’m confused…at 5:08 you say this is a “bullish engulfing candle.” It seems like it is a bearish engulfing candle, isn’t it?
You had nailed it before me!
I would consider the wicks. If the wicks engulf the other wicks it counts, you can see it in his examples. But if the body engulf the other body is better.
one question – at 5:07 you talk about a Bullish engulf … Ain’t that a Bearish one ?
Thanks David i love your tutorials
Thanks for the useful video .
Can i use these Patherns with hiken ashi candles ?
For examples most of the times i see doji and hanging man in hiken ashi candles .
thank you sir
thanks..
Thanks from me as well…
Do you have a video bout Bullish and Engulfing Harami?
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…
Fibonacci and support and resistance are enough there
do you guys have a playlist of whole candle stick patterns on your channel? i couldn’t find it.
how do you know where to put your take profit? or is there a video that shows you how do you determine your percentages or stop loss and take profit?
Bear or bull, the stocks are the same.. It is the price that is not.. It is up to you whether you like to buy it cheap when it is a bear market or buy it expensive during a bull run. It is up to you…
You literally couldn’t make it sound any easier and I still cant grasp the concept 🙈🙈🙈
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.
Great video
Thanks man
Does this work for forex trading?
Kaun sa app per Run karna Hota Hai
Iske liye kaun sa app per Ham kam Karen
T212 customer service very poor
Nice video dude
Thanks for the Video! Apologies for chiming in, I would appreciate your initial thoughts. Have you thought about – Sanames Stockify Scripophily (Sure I saw it on Google)? It is a good exclusive product for discovering the best options trading technique without the hard work. Ive heard some super things about it and my close friend Aubrey at last got excellent success with it.
Excellent content and very useful must watch for all traders. Thanks a lot.
Thanks for your content. One thing i’m confused with is that When you look at different time scales on the chart you see different candlestick formations, for example you can identify “Engulfing Candlestick chary pattern” on a 1 day chart time scale but when you switch to let’s say 10 minutes time frame you can’t see that chart pattern. is this candlestick chart pattern still a valid pattern?
Candlesticks are still confusing but becoming clearer. Thank you sir!
Thank you for this post
Ca you use this on the 5 minute chart?
You always give the best and simple explanations thank you 🙂
What program is it ?
thumbnail said it all. thaannks
Awesome explanation man, god bless
This guy looks like a Hollywood movie star that i just cant get my head around .
#jasonbateman
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
Look at peloton dark cloud candle and confirmation bearish candle what do you think it will do monday
Thanks
Englishmen always explain things simply
great video ! ALOHA!
Thanks for the video!
Dream it believe it become it
Wow, I love your technique and way of explanation
thanks so much for the video!
nice explanation
Does the colour of the engulfing candle matter? For instance, can you have a bearish e.candlestick that is green in colour?
Thank you,great content.
Sorry I’m a bit confused. At 2:25 you say the engulfing candlestick that is at the end of the uptrend is considered a bearish correct? When a similar pattern at 5:11 is taking place you say the engulfing candle at the end of the uptrend is considered a bullish candle this time? How so? Not sure if it was a mistake, or I missed something. I am also confused because I thought red candles meant bearish and green meant bullish? Am I wrong there too? Hope to hear back from you, you are one of my favorite trading channels! Thanks!
so basically they work because people agree they work
You have a better idea?
Thank you💯
Can you explain why some candles don’t open up at the exact closing price of previous candle, like the red engulfing candle at 4:56
nice
U r the good teacher sir🔥
5:13 would be considered bearish engulfing right? because the red body engulfs the green and you said its bullish engulfing
Sir your explanation works like magic thank you very much I tried your explanation and made profit
How long are these trades for? I mean the timeframe?
Time expiration i mean
Good job sir
Easy to understand..my gratitude
At 5:12 you state that the red candle is a bullish engulfing candle is there a way that you can show that again because I see that the close is lower than the open so isnt that a bearish candle?
Am following the lesson David
This is actually useful. Drawings just don’t do it justice