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How to Use Engulfing Candles in TradingViewEngulfing patterns are among the most powerful candlestick formations because they signal strong momentum shifts and can help you spot dramatic trend reversal opportunities. What You'll Learn: • How to identify valid engulfing formations where one candle completely covers another's body • The two types: bullish engulfing (green candle engulfs red) and bearish engulfing (red candle engulfs green) • Psychology behind engulfing patterns: when one side completely overwhelms the other • Using volume analysis to confirm engulfing pattern validity • Finding meaningful engulfing patterns at trend highs and lows for reversal setups • Timeframe considerations for engulfing analysis on any chart period • Step-by-step trading strategy for engulfing reversal setups • Setting proper stop losses above engulfing candle highs • Determining profit targets below engulfing candle lows • Managing wide-range drawdowns common with strong momentum shifts • Advanced entry technique: waiting for retracements to improve risk-reward ratios This tutorial may help futures traders and technical analysts who want to use powerful candlestick patterns to identify significant momentum changes. The strategies covered could assist you in creating effective reversal setups when strong buying or selling pressure appears at key price levels. Learn more about futures trading with Tradingview: optimusfutures.com Disclaimer: There is a substantial risk of loss in futures trading. Past performance is not indicative of future results. Please trade only with risk capital. We are not responsible for any third-party links, comments, or content shared on TradingView. Any opinions, links, or messages posted by users on TradingView do not represent our views or recommendations. Please exercise your own judgment and due diligence when engaging with any external content or user commentary. This video represents the opinion of Optimus Futures and is intended for educational purposes only. Chart interpretations are presented solely to illustrate objective technical concepts and should not be viewed as predictive of future market behavior. In our opinion, charts are analytical tools—not forecasting instruments. Market conditions are constantly evolving, and all trading decisions should be made independently, with careful consideration of individual risk tolerance and financial objectives.
CME_MINI:NQ1!Education
by Optimus Futures
2
Mastering Institutional Order Flow & Price DeliveryGreetings traders! Welcome back to today's video! In this educational session, we'll delve into the concept of institutional order flow. Our objective is to accurately identify market reversals and trend continuations. By mastering the draw on liquidity, we will gain a clearer understanding of whether the market is experiencing bullish or bearish institutional order flow. To accomplish this, we will analyze the behavior of smart money and trace their footprints. Join us as we uncover these crucial insights together. If you haven't seen the " Premium & Discount Price Delivery in Institutional Trading " video, here is the link: Happy Trading, The_Architect
TVC:DXYEducation
by The_Archi-tect
Mastering High Probability Trading EnvironmentsIn this educational video, we'll delve into High Probability Trading Environments and introduce a simple yet effective concept to confirm their presence . Understanding these environments will empower you to confidently navigate the market with consistency and success. For a comprehensive understanding, I recommend watching my previous video on Understanding Trend Analysis, SMT, and ICT Concepts below. If you have any questions, feel free to leave them in the comments section. Happy trading! The_Architect
Education
by The_Archi-tect
Understanding Trend Analysis, SMT and ICT ConceptsIn this video, I'll delve into the concept of Institutional Market Structure, a vital tool for trend analysis. Specifically, we'll explore the Smart Money Tool/Technique (SMT), which provides insights into whether a market will continue its trend or potentially reverse. Understanding these concepts is crucial for effective trading strategies. Sit back, relax, and enjoy the video! Please do leave any questions in the comment section if you have any. Kind Regards, The_Architect
Education
by The_Archi-tect
4
How To : Momentum Shifts ( Key Set Ups) Hi Traders! Lets review 3 Trade SetUp For Key Momentum Shifts: For the past 28 years, I have been using three simple trades setups, that I'll explain in the video, to be selective in my trades and to identify key momentum shifts in the market. I hope these setups will be useful to you as well. High Frequency Traders and Professional Traders will often run retail trader stops by blowing through key support and resistance levels like round numbers only to reverse shortly afterwards. We must protect ourselves from these tactics and be careful not to chase a move or get stopped out. Recognizing and patiently waiting for one of these trade set up will help especially if you combined or recognize them with a chart formations like a double tops or head and shoulder pattern. Trade Setup 1: Cross above a key resistance, recross below = shift of momentum. The same setup can be used with a cross below a key support level. Trade Setup 2: Cross above a key resistance, recross below and a retest of the resistance with a Lower Higher = shift of momentum. This is my preferred setup. Trade Setup 3: 2 touches to a key resistance or 2 touches to a key support and entering on the 3rd touch for a 66% probability of successful trade. I hope these setup are helpful, whether you trade or invest, using key momentum shifts with support and resistance lines. Hope it helps Take care Marc
COINBASE:AVAXUSDEducation
by PowerIndicators
6
Beware False Breakouts! How To Spot Them...Investors should use basic Technical Analysis for powerful decision making. I see it as a challenge to demonstrate how useful knowledge of one simple pattern can be to identify price reversals. Recognizing this pattern and acting on it will save much money and headache! Both traders and investors need to be on guard for false breakout reversals. Seeing this pattern in action can provide an excellent profit target, entry point, or prevent major drawdown! In this video I look at examples in the Silver ETF AMEX:SLV , Spotify stock NYSE:SPOT , and Forex Euro/Dollar pair FX:EURUSD for false breakouts and what follows. I am excited to make this video for my viewers and for Best of Us Investing!
NASDAQ:AAPLEducation
by norok
72
Candlestick Chart Part 2 : ReversalsHello everyone, as we all know the market action discounts everything :) _________________________________Make sure to Like and Follow if you like the idea_________________________________ Today's video will be about the Candlestick Chart : Reversal Patterns. So lets start by talking about the different types of Patterns : Bullish Reversal Patterns Bearish Reversal Patterns And they are divided into 3 groups : Weak Patterns Reliable Patterns Strong Patterns We Start with the Weak Reversals : 1) Dragonfly Pattern : A dragonfly doji candlestick is a candlestick pattern with the open, close, and high prices of an asset at the same level. A dragonfly doji pattern does not appear constantly. It is used as a technical indicator that signals a potential reversal of the asset’s price. 2) Hammer & Hanging Man Patterns : The Hammer is a bullish reversal pattern that forms during a downtrend. It is named because the market is hammering out a bottom. When the price is falling, hammers signal that the bottom is near and the price will start rising again. The long lower shadow indicates that sellers pushed prices lower, but buyers were able to overcome this selling pressure and closed near the open. The Hanging Man is a bearish reversal pattern that can also mark a top or strong resistance level. When the price is rising, the formation of a Hanging Man indicates that sellers are beginning to outnumber buyers. The long lower shadow shows that sellers pushed prices lower during the session. Buyers were able to push the price back up some but only near the open. 3) Inverted Hammer & Shooting Star Patterns : The Inverted Hammer occurs when the price has been falling suggests the possibility of a reversal. Its long upper shadow shows that buyers tried to bid the price higher. However, sellers saw what the buyers were doing, said "No!" and attempted to push the price back down. The Shooting Star is a bearish reversal pattern that looks identical to the inverted hammer but occurs when the price has been rising. Its shape indicates that the price opened at its low, rallied, but pulled back to the bottom. 4) Dark Cloud Pattern : A 2-candle pattern. The first candle is bullish and has a long body. The second candlestick should open significantly above the first one’s closing level and close below 50% of the first candlestick’s body. The sell signal is moderately strong. 5) Piercing Pattern : A 2-candle pattern. The first candlestick is long and bearish. The second candlestick opens with a gap down, below the closing level of the first one. It’s a big bullish candlestick, which closes above the 50% of the first candle’s body. Both bodies should be long enough. 6) Upside Gap Three Method : The upside gap three methods candlestick pattern is a bearish continuation pattern that only occurs during an uptrend. It consists of three candles. The first two candles are long and white in the direction of the prevailing trend. The second black candle creates an upside gap. The third candle fills the gap between the first and the second candle. 7) Downside Gap Three Method : The downside gap three methods candlestick pattern appears during a downtrend and consists of three candles. The first two candles have a gap down between them while the third candle covers the gap between the first two. The gap between the first two candles simply gets filled. 8) Bearish Harami Pattern : A 2-candle pattern. The body of the second candle is completely contained within the body of the first one and has the opposite color. 9) Bullish Herami Pattern : A 2-candle pattern. The body of the second candle is completely contained within the body of the first one and has the opposite color. Now Lets Talk about the Reliable Reversals : 1) Bullish Engulfing Pattern : A 2-candle pattern appears at the end of the downtrend. The first candlestick is bearish. The second candle should open below the low of the first candlestick low and close above its high. 2) Bearish Engulfing Pattern : A 2-candle pattern. The first candlestick is bullish. The second candlestick is bearish and should open above the first candlestick’s high and close below its low. 3) Tower Top Pattern : The tower top is a reversal pattern that occurs at high price levels. Typically one or more long bullish candlesticks are followed by a few smaller real body candlesticks and then the pattern is completed with one or more large bearish candlesticks. 4) Tower Bottom Pattern : The tower bottom is a reversal pattern that occurs at low price levels. There is one or more long bearish candlesticks followed by a few smaller body candlesticks and then concluded with one or more large bullish candlesticks. 5) Bullish Abandoned Baby Pattern : The bullish abandoned baby is a pattern that appears at the end of a downtrend and signals reversal to an uptrend. Simply put, it signals an end of the selling pressure of the bears and return of the bulls in the market. This pattern consists of three candlesticks: the first candle has a black (or red) big body, the second is a small and bearish candle – or a Doji, and the third is white (or green) candle. 6) Bearish Abandoned Baby Pattern : The bearish abandoned baby is a reversal pattern that forms during an uptrend. It is characterized by three candles, where the first candle is long bodied and white/green. The second candle is a Doji that gaps above the close of the first bar in the series. The third candle opens below the close of the second bar and is long bodied and black/red. 7) Dumpling Top Pattern : A dumpling top occurs when small real body candlesticks slowly rise and then move in a neutral to downward direction. The dumpling top pattern is complete when there is a bearish candlestick that gaps down from the other candlesticks. 8) Fry Pan Bottom Pattern : The opposite of the dumpling top is the fry pan bottom pattern. The fry pan bottom occurs when small real body candlesticks slowly move downward and then move in a neutral to upward direction. The fry pan bottom pattern is complete when a bullish candlestick gaps up from the rest of the candlesticks. 9) Bullish Belt Hold Pattern : A bullish belt hold shows up in downtrends. The pattern can be recognized by one long, full-bodied candlestick that is bullish and opens at a new recent low. The bullish belt hold candle is expected to have a flat or nearly flat bottom. The top has a small shadow, relative to the length of the body. 10) Bearish Belt Hold Pattern : The bearish belt hold is the complete opposite and it comes up in uptrends. To detect it, look for a long full-bodied, bearish candlestick that stands out at the top of an uptrend because it will get to a new recent high and it should be noticeably longer than the other candles. 11) Tweezer Top Pattern : The Tweezer Top pattern is a bearish reversal candlestick pattern that is formed at the end of an uptrend. It consists of two candlesticks, the first one being bullish and the second one being bearish candlestick. Both the tweezer candlestick make almost or the same high. 12) Tweezers Bottom Pattern : The Tweezer Bottom candlestick pattern is a bullish reversal candlestick pattern that is formed at the end of the downtrend. It consists of two candlesticks, the first one being bearish and the second one being bullish candlestick. Both the candlesticks make almost or the same low. And Last but not least The Strong Reversal Patterns : 1) Three White Soldiers Pattern : A 3-candle pattern. There’s a series of 3 bullish candles with long bodies. Each candle should open within the previous body, better above its middle. Each candle closes at a new high, near its maximum. The reliability of this pattern is very high, but still, a confirmation in the form of a white candlestick with a higher close or a gap-up is suggested. 2) Three Black Crows Pattern : A 3-candlestick pattern. There’s a series of 3 bearish candles with long bodies. Each candle opens within the body of the previous one, better below its middle. Each candle closes at a new low, near its minimum. The reliability of this pattern is very high, but still, a confirmation in the form of a bearish candlestick with a lower close or a gap-down is suggested. 3) Morning Star Pattern : A 3-candle pattern. After a long bearish candle, there’s a bearish gap down. The bears are in control, but they don’t achieve much. The second candle is quite small and its color is not important, although it’s better if it’s bullish. The third bullish candle opens with a gap up and fills the previous bearish gap. This candle is often longer than the first one. 4) Evening Star Pattern : A 3-candle pattern. After a long bullish candlestick, there’s a bullish gap up. The bulls are in control, but they don’t achieve much. The second candlestick is quite small and its color is not important. The third bearish candle opens with a gap down and fills the previous bullish gap. This candle is often longer than the first one. 5) Bullish Three Line Strike Pattern : A bullish three-line strike is made up of four candles. Of these, the first three are bullish, while the last is bearish. It is made up of three strong bullish candles that progressively end higher followed by a final strike candle. The strike candlestick is bearish and begins at or higher than the third candle but closes at least lower than the open of the first candle. 6) Bearish Three Line Strike Pattern : A bearish three-line strike is a four candle continuation pattern that comes up in a bearish trend. The first three candles are bearish, while the last candle is positive and ends above the highest close of the previous three candles. I Do wanna mention General Reversal Patterns : Three Mountains is the same as Triple Top Pattern Three Rivers is the same as Inverted Triple Top Pattern Buddha Top is the same as Head and Shoulders Pattern Inverted Buddha is the Same as Inverted Head and Shoulders Pattern I hope that I was able to help you understand Reversal Patterns in Candlestick Charts better and if you have any more questions don't hesitate to ask. Hit that like if you found this helpful and check out my other video about the Moving Average, Stochastic oscillator, The Dow Jones Theory, How To Trade Breakouts, The RSI , The MACD , The Bollinger Bands , The Different Types Of Trading Strategies, Candlestick Charts Part 1 links will be bellow
BITSTAMP:BTCUSDEducation
by GabiDahduh
4