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28 Thoughts to “Candlestick Charting – Vol 14 – Bullish Engulfing Pattern”

  1. YourTradingCoach

    Hi trikhakapila,

    You’ve had a busy couple of days, getting through all these Candlestick videos. 🙂

    I’m glad you’ve enjoyed them.

    All the best with your trading,
    Lance.

  2. YourTradingCoach

    Hey trikhakapila,

    I can’t recommend any book for fib. It’s not a tool I’ve ever really used.

    I imagine there’s sufficient info online though.

    Cheers,
    Lance

  3. bobbymak880

    Thank you. Very helpful!

  4. n33dw33d3333

    gread video, where is the take profit??

  5. YourTradingCoach

    @n33dw33d3333
    Thanks for your comment. Candlestick patterns are simply an indication of a short-term change in supply/demand. As such, they’re great at providing an entry trigger, when that trigger is placed in the context of background price action. They don’t provide a target. Your target will be dependent on your strategy. In my case, it’s simply the next few S/R levels, as these provide potential sources of orderflow to oppose your trade.
    Cheers,
    YourTradingCoach

  6. stockatlas101

    excellent video

  7. YourTradingCoach

    @stockatlas101
    Thanks stockatlas101! I’m glad to hear you enjoyed the candlestick video series! Cheers,
    Lance

  8. souldrop1000

    HI, to call it a valid bullish englufing does the second body has to engulf the spikes(high/low) of the first body ? or only engulfing the real body will do ?

  9. souldrop1000

    Hi are these dark cloud cover, bullish englufing hammer and shooting star still valid if found in a higher low or lower high of a trend as a continuation pattern ?

  10. YourTradingCoach

    Hi Souldrop1000,
    The second real body engulfs the first real body only. It does not need to engulf the high/low shadows, however would provide a stronger signal if it did so.

  11. YourTradingCoach

    Hi souldrop1000,
    Absolutely. Although they’re called reversal patterns they’re not just used to identify reversal of trends. It’s a poor name. They actually indicate a short-term shift in sentiment. We trade this in context with market structure. And as such, it will apply just as well at the end of a retracement to signal continuation of the prior trend.

  12. Roronoajack

    Great teachings! But what are s/r levels?

  13. YourTradingCoach

    “S/R levels” refer to support and resistance levels. See my video on S/R in the Intro to TA playlist if you’re not familiar with the concept of support and resistance.

  14. pilara monkgogi moshebashebi

    love these video series…

    1. YourTradingCoach

      @pilara monkgogi moshebashebi Thanks! Glad you’re enjoying the candlestick video series! 🙂

  15. Manu Mewari

    Great Job….. watching all videos in one go…. very crisp, informative and easy to understand.

    1. YourTradingCoach

      +Manu Mewari Thanks! I’m glad you enjoyed the Candlestick Trading vids! 🙂 All the best with your trading,
      Lance.

  16. PhilippineKnows

    Your videos are very powerful and informative. I will watch them again and again. Also subscribed. You are a blessing to everyone. Great job well done!!!

    1. YourTradingCoach

      +PhilippineKnows Thanks. Much appreciated. 🙂

    2. owntipstich

      can you use bullish/bearish engulfing as trend continuation also ? , rather than just as a key support/resistance ?

  17. Kamoru Ajagbe

    Is it only swing low that piercing pattern price action valid or any support level?
    Can piercing pattern be traded as trend continuation setup?

    1. YourTradingCoach

      The piercing pattern is a signal for potential turn at the bottom of a downswing. So this does not only apply counter-trend at a level of support. As you’ve suggested it can also be applicable as a continuation pattern. For example, when an uptrend breaks resistance and pulls back to retest that broken level (prior resistance becomes support). This is essentially a trend continuation pattern. Also, in a strong trend environment, a simple pullback against that trend may end with a piercing pattern.

      The most important element in EVERY candlestick pattern is the context within which it is used; not the pattern itself.

  18. Surbhi Mittal

    I like the way you explain psychology behind patterns.How much importance do you give to tails?

    1. YourTradingCoach

      All information is important. This includes tails which show rejection of higher/lower prices. But CONTEXT is the most important thing with all patterns. Where is the tail occurring within the market structure? Has it broken any key levels or swing highs/lows? This is what’s important.

  19. Charu Chauhan

    Thank you so much for nice explanation…….. is this chart is xandel chart or its Heikin Ashi???

    pls advise

    1. YourTradingCoach

      All videos are based upon standard Candlesticks (Open/Close/High/Low). They are not Heiken Ashi candles.

  20. CubingWithCarl

    Thanks!

    1. YourTradingCoach

      You’re welcome Carl. All the best of luck with your trading.

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