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34 Thoughts to “Candlestick Charting – Vol 13 – Bearish Engulfing Pattern”

  1. YourTradingCoach

    Thanks medad1,
    Glad you enjoyed the videos. Thanks for the feedback.
    Cheers,
    Lance.

  2. Phan Lê Khoa

    Very good

  3. YourTradingCoach

    Hi lekhoa288,

    Cool. Thanks for the feedback. I’m glad you’ve liked the candlestick vids.

    Happy trading,
    Lance.

  4. djnv11

    appreciate all the hard work sir thank you

  5. YourTradingCoach

    Hi djnv11,

    Thanks. I’m glad you’ve enjoyed the videos.

    All the best with your trading,
    Lance.

  6. YourTradingCoach

    @n3m3s1srulz

    Thanks n3m3s1srulz
    I’m glad to hear you’ve got good value out of these candlestick vids.
    Thanks for your feedback,
    Lance
    YourTradingCoach

  7. Vladimir

    what do u mean when u say bearish engulfing pattern is equivalent to a shooting star? does it mean it following candle turns in shooting star or have same power as shooting star?or I should look for the three of them together?

  8. Froi Esmero

    thank you.

  9. Waqar Shah

    Awesome videos- well explained and clearly documented. Learning so much from your expertise and insight. Can you explain – do you base your support and resistance on a longer term chart and then use those on the shorter time frames?

    1. YourTradingCoach

      @Waqar Shah Thanks. I’m glad you enjoy the videos. No, this is not how I trade. Candlestick analysis is just a step along the path of learning to see shifting sentiment in ALL price action. See the following article (and the followup linked at the end of the article) for an introduction to the concept – http://yourtradingcoach.com/trading-process-and-strategy/advanced-candlestick-analysis-part-1-of-2/

  10. Solar G

    When the bearish engulfs does the wick matters

    1. YourTradingCoach

      @Henry Chikelu Hi Henry,

      The engulfing pattern definitions require the second body to engulf the first. Wicks are not a part of the definition.

      Have a look at the free ebook page of my website which has Candlestick Trading Poster and Quick Reference Guide PDF downloads. These will provide you with definitions and examples.

      One final point though… wicks may provide important contextual information that should be considered as well. They’re just not a part of the pattern definition.

      Cheers,

      Lance

  11. Billy Boller

    Great video very helpful! I’m practicing not using any real money at my enters and exits and I’m surprised at how many I’m getting right! Any other technical you could suggest on the chart to include with the candle sticks? Thank you!

    1. YourTradingCoach

      @Anon ymous Candlestick education is JUST the beginning. There is so much more. See the two links in the following page under the heading “My Focus is on Real-Time Bar-by Bar Analysis”:
      http://yourtradingcoach.com/other/what-makes-yourtradingcoach-com-different-to-other-trading-educators/

  12. JP Trader

    Hello, great video, thanks for all the help.

    How long does the uptrend need to be for the bearish engulfing candle to be effective?

    Also, what time frame chart is best for day trading with this strategy?

    Thanks!

    1. YourTradingCoach

      @JP Trader JP Trader,

      Thanks. Glad I could be of some help.

      Q. How long does the uptrend need to be for the bearish engulfing candle to be effective?

      A. This is not really a question that can be answered with a simple response. It depends upon context. Candlestick patterns are not a strategy in themselves, but rather just a setup or trigger pattern that may be applied within a wider trading strategy. Context is essential. Is the market rangebound or trending? If it’s trending, then are you trading a with-trend pullback as it reverses to resume the original trend, or is this a counter-trend move? Is the counter-trend move planned as a mean-reversion trade or are you anticipating a complete reversal? ie. STRATEGY & CONTEXT! Don’t make the mistake of simply trading just because you see a candlestick pattern.

      Q. Also, what time frame chart is best for day trading with this

      A. Any timeframe provided (a) sufficient liquidity to ensure smooth price flow and (b) sufficient range of movement in the price swings to allow for profits after costs.

      Cheers,
      Lance

    2. JP Trader

      Thanks Lance, very helpful.

  13. Surbhi Mittal

    Wonderful Video.

    1. YourTradingCoach

      Thanks! 🙂

  14. hannouneh68

    hi i have  seen a pattern on top of the market where the opening of the red candle and the closing of the  previous green candle are the same price but the red candle closes below the green candle but the green candle has long wick that is much lower than the real body of the red candle is it still valid bearish engulfing pattern ?

    1. YourTradingCoach

      Yes, if the real body of the second candle engulfs the real body of the first then it meets the definition requirements. So it is a valid pattern. Whether you trade it or not will depend upon your strategy; and the context within which the pattern occurs.

    2. hannouneh68

      thanks a lot

    3. M C

      i have personally observed alot of such candles which appear like that (Closing of first green candle and opening of second red candle are equal therefore no actual engulfing) such patterns have failed to form most of the time. I think chances are better if there is a gap between the opening of green and closing of red & closing of green and opening of red (as you have mentioned in your videos).

  15. Love Loyalty

    Do you no any one individual on fx or anyone person who has a good drawdown and good performance who  provides good signals for trading im asking you because i know you been 

    In the tradding community for a while now and im shure you have ran acroos at least one good trader who provides signals you must have bumped into somebody good sir

    1. YourTradingCoach

      I can’t help with signals. Sorry. As I don’t use them personally, I have no insights into exactly how any of them trade. Plus whether or not they’re legitimate. Plus no insights into what services would best fit your needs and circumstances.

  16. This Guy Miko

    What did you say at 5:15? I turned captions on, but they say “sari below the open”. What did you actually say? “Sorry below the open”? 🙂 I’m curious, and I’ve repeated it 10 times and couldn’t hear the word.

    1. YourTradingCoach

      “… could not push it down to close below the low… sorry… below the open”
      (Damn that Aussie accent!!!)

    2. This Guy Miko

      :DDD Thank you very much, man! I love your channel!

  17. Trade Moore

    Thanks for the great points regarding candlesticks… You explained them really well!

  18. 3D to 5D Consciousness

    Your videos are awesome and by far the highest quality in knowledge and experience. I’ve learned a lot from studying all of them. Thanks for putting them together and giving it away for free too! You’re great!

    1. YourTradingCoach

      You’re very welcome. Thanks for the great feedback. 🙂

  19. noone

    Different traders and so called gurus have said to measure from the candlewicks or shadows rather than the body. So, who is freaking correct or is this another bull crap guestimation? I’d like to freaking know and so do many people. That about sums it all up.

    1. YourTradingCoach

      Candlestick patterns are based on the body (open-close). OHLC price bar patterns are typically based on the full range (high-low). They’re just different methods of reading the shifting sentiment within the price movement, each with slightly different requirements for when they will call the pattern as being complete. Think of it simply as two different languages for describing the price action. Just pick one and be consistent in its use. The difference is minor. What is far more important, regardless of which you use, is the context within which it is applied (ie. where in the bigger picture structure of the market is the pattern occurring).

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