{"id":11720,"date":"2015-05-21T09:30:49","date_gmt":"2015-05-21T13:30:49","guid":{"rendered":"http:\/\/club.ino.com\/trading\/?p=11720"},"modified":"2015-05-21T09:33:05","modified_gmt":"2015-05-21T13:33:05","slug":"candlestick-patterns-engulfing-2","status":"publish","type":"post","link":"https:\/\/wwwtest.ino.com\/blog\/2015\/05\/candlestick-patterns-engulfing-2\/","title":{"rendered":"Candlestick Patterns - Engulfing"},"content":{"rendered":"<p>If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction of the market can be tricky and just plain confusing at times, but Larry\u2019s expert opinion keeps it simple.<\/p>\n<p>If you like this article, <a href=\"http:\/\/www.ino.com\/specials\/secretsoftraders\/larryebook.html\" target=\"_blank\"><strong>Larry\u2019s also agreed to give you free access to his award winning book.<\/strong><\/a><\/p>\n<p>Candlestick charts have all kinds of potential patterns that technicians are watchful for. One of the easiest to spot is an engulfing pattern. This set-up consists of two candlesticks, one of which is \u201cengulfing\u201d the previous one. That means the body of the second candlestick is longer than the first one. It doesn\u2019t have to extend beyond the wicks of that first candlestick, just the real body. period of time.<!--more--><\/p>\n<p><strong>Spot an engulfing candlestick and you might be seeing a reversal signal<\/strong><\/p>\n<p>When the real body of a second candlestick extends beyond the previous one, the participants are behaving in a particular way. The candlestick is bigger because some combination of opening price and buying or selling pressure is making it bigger. These combinations can tell you if there is potential for an existing trend to change.<\/p>\n<p><strong>Candlestick fans are watching for an engulfing candlestick of a different color <\/strong><\/p>\n<p>The reversals are spotted when there is a hollow candlestick engulfing a filled one or vice versa (red and green if you are using a chart program with colors.) Don\u2019t get caught up in anything involving a doji \u2013 those are pretty easy to engulf.<\/p>\n<p>If the market was in an apparent uptrend and a hollow (or green) candlestick is engulfed by a filled (or red) one, this might be a signal of a bearish reversal. The second candlestick shows that the market opened above the prior closing price and then selling pressure came in and the market was pushed below the prior opening price.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" alt=\"\" src=\"\/img\/sites\/ino\/email\/4176.jpg\" width=\"87\" height=\"92\" \/><\/p>\n<p>Finding a hollow (or green) candlestick engulfing a filled (or red) one could be a bullish reversal signal in an established downtrend. In this case, the hollow candlestick would show that the session opened at a price below the prior close, where the real body starts below the filled candlestick from the previous session. Buying ensued and the market price moved through and above the prior opening price.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" alt=\"\" src=\"\/img\/sites\/ino\/email\/4177.jpg\" width=\"87\" height=\"92\" \/><\/p>\n<p align=\"left\"><strong>Engulfing patterns can be easy to spot \u2013 look for larger candlestick bodies to indicate firmer potential signals<\/strong><\/p>\n<p align=\"left\">Remember, watch for the real body of a second candlestick to engulf the first. If it is a contrary to the prevailing trend, you might have a reversal signal on your hands. Look at the buying or selling pressure as an indication of market direction. As with all technical chart patterns, keep an eye on the following trading sessions to confirm the move. Watch for further weakness after a bearish engulfing pattern or continuing strength on a bullish engulfing pattern.<\/p>\n<p><a href=\"http:\/\/www.ino.com\/specials\/secretsoftraders\/larryebook.html\" target=\"_blank\"><strong>Click Here to gain access to Larry's award winning book.<\/strong><\/a><\/p>\n<p>Larry Levin<br \/>\nPresident & Founder- Trading Advantage<br \/>\n<a href=\"mailto:la***@tr**************.com\" data-original-string=\"XDEH6XJ7CGm33VrZzZ2OM3uWcuNxeOQIeaVaLn8Rfwo=\" title=\"This contact has been encoded by Anti-Spam by CleanTalk. Click to decode. To finish the decoding make sure that JavaScript is enabled in your browser.\"><span \n                data-original-string=\"XDEH6XJ7CGm33VrZzZ2OM3uWcuNxeOQIeaVaLn8Rfwo=\"\n                class=\"apbct-email-encoder\"\n                title=\"This contact has been encoded by Anti-Spam by CleanTalk. Click to decode. To finish the decoding make sure that JavaScript is enabled in your browser.\"><br \/>\n        <span class=\"apbct-ee-blur-group\"><br \/>\n            <span class=\"apbct-ee-blur_email-text\">la***@tr**************.com<\/span><br \/>\n            <span class=\"apbct-ee-static-blur\"><br \/>\n                <span class=\"apbct-ee-blur apbct-ee-blur_rectangle-init\"><\/span><br \/>\n                <span class=\"apbct-ee-blur apbct-ee-blur_rectangle-soft\"><\/span><br \/>\n                <span class=\"apbct-ee-blur apbct-ee-blur_rectangle-hard\"><\/span><br \/>\n            <\/span><br \/>\n            <span class=\"apbct-ee-animate-blur\"><br \/>\n                <span class=\"apbct-ee-blur apbct-ee-blur_rectangle-init apbct-ee-blur_animate-init\"><\/span><br \/>\n                <span class=\"apbct-ee-blur apbct-ee-blur_rectangle-soft apbct-ee-blur_animate-soft \"><\/span><br \/>\n                <span class=\"apbct-ee-blur apbct-ee-blur_rectangle-hard apbct-ee-blur_animate-hard\"><\/span><br \/>\n            <\/span><br \/>\n        <\/span><br \/>\n<\/span><\/a><\/p>\n<p>Disclaimer: Futures and options trading involves a substantial degree of risk and may not be suitable for all investors. Past performance is not necessarily indicative of future results. Secrets of Traders LLC provides only training and educational information. By accessing any Secrets of Traders or Trading Advantage content, you agree to be bound by the terms of service. <strong><a href=\"http:\/\/tradingadvantage.com\/terms-of-service\/\" target=\"_blank\">Click Here <\/a><\/strong>to review the terms of service.<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[3414,3765,356,2913,3821,2975,3882,2976,3579,3178],"class_list":["post-11720","post","type-post","status-publish","format-standard","hentry","category-general","tag-candlesticks","tag-engulfing","tag-japanese-candlesticks","tag-larry-levin","tag-market-direction","tag-marketclub-techniques","tag-technique","tag-tips-talk","tag-trading-advantage","tag-trends"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v23.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Candlestick Patterns - Engulfing - INO.com Trader&#039;s Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ino.com\/blog\/2015\/05\/candlestick-patterns-engulfing-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Candlestick Patterns - Engulfing - INO.com Trader&#039;s Blog\" \/>\n<meta property=\"og:description\" content=\"If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. 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