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.
Engulfingpattern
Top 3 Must-Know Candlestick Patterns for BeginnersGet your cup of coffee or tea ready we are doing a crash course on Candlesticks today
I’m walking you through three candlestick patterns every beginner trader should know—Doji, Engulfing Candles, and Hammers (including the Inverted Hammer). These patterns are super helpful when you’re trying to spot market reversals or continuations. I’ll show you how to easily recognize them and use them in your own trades. Let’s keep it simple and effective.
Key Takeaways:
Doji: Indicates indecision, potential reversals.
Engulfing Candles: Bullish or bearish reversal signals.
Hammer & Inverted Hammer: Bullish reversal after a downtrend.
Trade what you see and let’s get started!
Mindbloome Trader
Trading Series – The ManagementMost of us will spend about 90% of our time thinking of what to buy and at what price we should get in. In fact, that is only 10% of work done.
Focus on this scenario instead - “After getting into a position, how are we going to manage it with either a calculated loss when market go against us or how should we take profits when market perform better than our expectation?
As usual we will do a few case studies on how I manage my positions for this year.
Today’s content:
1. 90% of us – Spending too much time on “Getting in”
2. Steps to manage our trades after an entry?
If you have been following, today’s is the 7th tutorial in our Trading Series:
1. “The buy strategy”
2. “The sell strategy”
3. “Developing long & short-term view”
4. “Choosing between the time frame”
5. “The entry”
6. “The exit”
7. “The management”
Example 1
Micro E-Mini Nasdaq Futures
Minimum fluctuation
0.25 point = $0.50
1 point = $2
10 points = $20
100 points = $200
1,000 points = $2,000
Example 2
E-Mini Nasdaq Futures
Minimum fluctuation
0.25 point = $5
1 point = $20
10 points = $200
100 points = $2,000
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
NQ / NASDAQ / SP500 - Preparing for bullish buy signalsThe QQQ have been on a tear for about a week now. If you we're watching my analysis from 3-4 weeks ago you were aware of the inside bar setup that I was waiting for a bullish breakout of. Although we had a false break down on 5/23, price immediately recovered and the bullish breakout that I had been predicting did ensue. The price action on 5/23 produce a very bullish Inside-Bar/False Break pattern as well as a bullish engulfing bar, all above a critical support level. This generated a number of overlapping buy signals that many of you, including myself ended up going long on. I cashed out as price approached upper resistance and now we can see price has begun to pull back a bit. I will be watching for price to fall back to the support zone and then new bullish buy candlestick patterns to form such as a bullish pin bar, bullish engulfing bar or inside-bar. As long as price remains above 7,000 I am going to be strongly bullish and be watching for any signals to get long with the trend.