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.
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[@NoOne-bp2lb]

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.

[@AliveforAPurpose]

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

[@davidjones2452]

thanks very much!

[@farisabdlah349]

obviously google bot dislike

[@moffatthabokeatshotse4383]

one of the best tutorials so far

[@cryptolex9485]

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

[@thomassalane5822]

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

[@robertattard5527]

Love your style. Clear and easy to follow.

[@Chaves_Novo_Quiz]

Simple and good explanation, easy to understand.

[@ozkancab]

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

[@bazzukkatradingstrategies970]

Yah man come when u re ready or else...

[@lyanna0330]

Same I’ve been on the Demo version until I learn and eliminate my mistakes. Then I will dive in when I’ve fully understood it. I don’t wanna just be throwing my money away hoping for a miracle. Trading requires skill. Not luck

[@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.

[@adamcog1675]

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

[@tannermaxwell7321]

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

[@cubingwithcarl4572]

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!

[@wbacardi3719]

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

[@stevejones4010]

Thank you for the great update.

[@ttsupra87]

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

[@The_Clause]

How's the journey been like bro? Are you profitable?

[@TheStealthDawg]

hows the journey going man?

[@collentinarwo1513]

I understand its been 4years now, how is the business

[@ttsupra87]

@@The_Clause life happened had to abandon

[@noahyen3028]

Noooooooooo king its not too late to start again

[@omarvaldez00]

Thank you Dave, I understand it. Like every other video you do.

[@1018Stacey]

Thanks for explaining this in great detail, it will really be helpful to me!

[@chair6180]

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

[@TinyMonsterCat]

nice explanation, nice accent, easy learning. TY!

[@unnworthyservant]

My man Dave. Great video as always 👌

[@mohit3494]

Amazing strategy David Sir, thanks !

[@user-cm3ly1hc1r]

Wow, I love your technique and way of explanation

[@Mario241]

Thank you for sharing your knowledge :) I have been watching your videos a few days now hopefully I'll be able to make a successfull trade soon :)

[@MFXCenter786]

Excellent content and very useful must watch for all traders. Thanks a lot.

[@ceolondon9117]

Thanks David, Awesome explanation

[@sharonriley5019]

Thanks David i love your tutorials

[@GERCEKUGUR]

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

[@shurmansemeleer6750]

Great explanation.

[@sekytwo]

awesome videos bro! learning alot, Thank you!

[@MFXCenter786]

Very useful content. Love this channel

[@zeus0710]

You're a genius man! I'm learning a'lot thanks to you.

[@yangiez8494]

you are a great teacher!!!

[@diamond3358]

I thank you and appreciate your time and value.

[@chunoel1964]

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

[@GrooveFederation]

fantastic videos, thanks for the tips :-)

[@ahmedam77]

Amazing video as usual!

[@SyametKdx]

Very powerful candlestick....I really love it....thanks💪💪💪💪

[@itsmeliezel3211]

Thanks I am learning a lot from you.More candlestick pattern guides please.

[@sheikhhakim7265]

Its Me Liezel Hi

[@stevenguyen7479]

Thank you, David.

[@MP-yj5iu]

THANKS FOR YOUR REPLY, YOUR VID ARE EXCELLENT

[@prestburyinvest7919]

Great videos, thank you

[@roy-franciscobasan9588]

Easy to understand..my gratitude

[@ricardohall8275]

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

[@Trading212]

Well, the pleasure is ours. If you needing something else, let us know.

[@mauritscottyn5820]

Awesome explanation man, god bless

[@peterphiri7637]

Am following the lesson David

[@turbogoons-poland9297]

Thank you guys! God Bless

[@harithrahimi6820]

absolutely helpful!

[@hayastan4779]

Love the tutorials.

[@variable7911]

Thank you,great content.

[@lexstevens6781]

hi david i would first like to say great vlogs, i have learned so much in the last couple of days :-) would there be any chance you can do a vlog on market makers, i have recently discovered the big institutions are manipulating the markets, to rule out all predictable close stop loss positions , thank you :-)

[@itumelengmosailane1192]

Thanks this was concise

[@jartagniancopria1120]

Thanks this helps a lot!

[@burris7]

I am learning a great deal from your videos. I'd be interested to hear your comments about your personal favorite time frames per instrument. I mostly trade NatGas ETFs, Gold Miner ETFs and TQQQ - SQQQ. Am finding intraday a lot more challenging than swing trades averaging 10 day holds. My risk on the 10 day holds is greater than i would like because of the overnight gaps. Keep up the good work. And a big thank you!

[@davidjones2452]

Hi Steve. Thanks for the question. I would agree with you on the intraday trading - everyone wants to do it, it's very exciting but definitely harder than trying to trade bigger swing moves. I trade the S&P and individual US shares and clearly, with the market how it has been, a much less intensive approach. I have trades that can run for weeks. There is the risk of the gap you are right, but for me this is outweighed by the fact it is a more "relaxed" way of trading rather than watching everything all day long.

[@HonestlyGrown]

Thank you...awesome video

[@sanelemashumi4455]

U r the good teacher sir🔥

[@williambreeze2659]

Thanks for the video!

[@bonolob2596]

Lovely thank you 😊 please use different colors for the different candle sticks

[@chapidinaveenkumar8419]

Thank you very much sir....

[@oliverwendellgo7396]

Thank you for this post

[@ralphdaou9328]

Good lesson Thank you

[@LatinoWebStudio]

thanks so much for the video!

[@mesharath]

Good video

[@maze2maze2]

Thanks for the video

[@HTommy2133]

This was awesome David!!!!!

[@josephumera5916]

Great video

[@ashleyklein8895]

excellent presentation

[@Hardeepsingh-lp9hp]

nice explanation

[@UnderSix1]

It was great👍🏻👍🏻👍🏻

[@potatopotatoeOG]

thumbnail said it all. thaannks

[@krmlzr1079]

Thanks again!

[@ashaaribloodgood3048]

good video thank you

[@sureshkumarb6255]

Excellent sir thank you

[@VonnHarris2010]

You are Phenomenal. Wondering how can Determine when to enter a Market

[@Trading212]

You may take a look at the videos in these playlists: Indicators: Guides for Beginners - kzbin.info/aero/PL_qZbVTmPuY9qD6SPrJtECVif6UlkNXkS Technical Analysis & Charting - kzbin.info/aero/PL_qZbVTmPuY_xlEYmnriHzBnyte47sHPv

[@greenhouse3801]

Nice video dude

[@user-cn8li2hy3v]

absolutely great

[@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...

[@MegaLittleartist]

Fibonacci and support and resistance are enough there

[@shawnclark732]

I like the idea of using higher timeframes

[@vitalielungu4501]

👍🏻very good!

[@tjsylla]

great content

[@alipanks]

THANKS JONES,YOU ARE SPECIAL TO ME

[@Adoken101]

Thank you💯

[@mohamadzaki9050]

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

[@LinusLimMJ]

it is a bonus but not a criteria

[@Rolandomiclat23]

beautiful !...

[@roy-franciscobasan9588]

Good job sir

[@bagheri4]

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 .

[@khaled.Abohamad]

Thx David I'm A Khaled Ibrahim Egyptian Trader cfte holder And this channel one of the best And unique Channels over all.. (But it's A small notice) In 5:10 minutes you was forgetting And said : it's A bullish Eng While Definitely you want to say : Bearish Eng. Thx Alot& keep going bro 😉 #God bless

[@davidjones2452]

Well spotted! I am clearly getting too old for all of this. Thanks for pointing it out.

[@0mhm]

replace that old, otherwise tnx for a great explanation in all of your vids. Greetings from sLOVEnia:)

[@khaled.Abohamad]

David Jones You Are One Of The Best bro And Always The OLD is GOLD haha I'm 40 year's old also😉😉 God bless you And keep going... Thx

[@Karnika21]

Nice video , But What should be the time horizon for intra day trading

[@chasemaglangit7954]

great video ! ALOHA!

[@mdrahimpk8846]

thank u love from Dhaka

[@zainpmz]

Great fan of you also.. Thanks

[@rahadahmed134]

Nice video

[@thedancer911]

Hi, great video once again; what trading platform are you using here ?

[@joeybaez1745]

hi, love your videos David, can you have a video on how margins levels equity works on your account if possible and depending on your balance whats the best way to trade responsibly

[@Trading212]

Have a look at this video -> kzbin.info/www/bejne/oYW9qYSMacqeq5Y&index=5&list=PL_qZbVTmPuY8viMc5O2uZSN9uFW2E500M We'll also be doing one about position sizes and risk management soon.

[@alexanderflexx8351]

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!

[@afshinfallah7349]

it was so nice

[@user-yk2rl3hc4y]

the good stuff!

[@realebogatala440]

Amazing 👍

[@marcusbirdman]

Thanks man

[@TJ_Undercover_Millionaire]

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?

[@WijthaGayan]

thank you sir

[@successwithonline459]

i really like your videos pls tell where should we enter for short trade