Trading Walk
Courses       Reviews       Resources       Login
Trading Walk
Courses       Reviews       Resources       Login

The Bullish Engulfing Candle Trading Strategy

How To Trade The Bullish Engulfing Reversal Candlestick Pattern
Are you tired of entering trades too late? 

If so, learn to trade the bullish engulfing candlestick pattern and use the three upgrades below to get more winning trades when trading this powerful pattern.

The bullish engulfing candlestick pattern is a powerful strategy for trading bottom reversals. If you want a candlestick strategy with very high win ratio the doji candlestick pattern strategy is also powerful. 

Bullish Engulfing Pattern Rules Explained

The bullish engulfing candle is one of the best candlestick patterns, a pattern I use every day. When you also use the three upgrades below, it becomes a very reliable engulfing candle trading strategy.
engulfing candle trading strategy
So what are the engulfing candle rules?

The first thing you need for a the bullish engulfing candle is a downtrend and at the bottom you want a bearish candle. 

You then want a bullish candle that opens at or below the previous close, and closes at or above the previous open. 

You also want the close to be near the high of the candle, so no tails on the upside. 

After the close, you get an engulfing bullish reversal, meaning you can expect price to move higher because buyers are in control.

The bullish engulfing pattern has a high reliability.
bullish engulfing pattern reliability
In the red circle you can see a bullish engulfing pattern and as we talked about you first have a downtrend and a bearish candle at the bottom. 

You then have an open of the bullish candle at or below the previous close, and a close at or above the previous open. You can see here we close above the previous candle.

We go from a move down, forming the the bullish engulfing, and then a move up.

There are more ways to read candlestick charts, keeping it simple is most often the best way.

Now, I want to show you three upgrades you can use to get more winning trades using the bullish engulfing candle.

Bullish Engulfing Pattern Technical Upgrades

engulfing bullish reversal meaning

1. Uptrend

The first upgrade you want to look for is to always trade in the direction of the trend,  you can see at the left of the chart that we start low and we continue higher. We are making higher highs.

If you trade the bullish engulfing candle in the direction of the trend you are basically taking trades in a retrace (a minor trend in the opposite direction of the big picture trend).

2. Support

The second upgrade you want to look for when trading the bullish engulfing candle is support, you can see in the chart we have a previous low right at the level where the bullish engulfing candle appears. This is a strong and reliable support level that increase the probability of a successful trade.

You can use any method you want to find strong support and resistance levels. Some of the most popular methods includes trendlines and Fibonacci retracement levels

3. Round Numbers

The third upgrade you want to look for is round numbers, you can see in the chart you have the bullish engulfing candle right at the 1200.00 level. Round numbers are really really powerful support and resistance levels and something you should absolutely trade.

Bullish Engulfing Pattern Tutorial

Do You Want My
FREE Forex Strategy?
Free Winning Trading Strategy Forex Stocks Options Crypto
Best Forex Signals Telegram
Johan Nordstrom Professional Trader Risk Management
I'm a family guy in my late 20's who learned how to trade the markets in a simple yet effective way. During university I studied investing and graduated with a master's degree in risk management. Quickly, I realized that I was onto something. I started helping friends and taking students. My students started getting results, spent less time in front of their screens, and their accounts grew consistently. Learn more about me here.
The Most Important
FX Tools and Resources
You Might Also Like...
Reading Candlestick Charts Advanced Patterns
The 10 Most Common Trading Mistakes Traders Make
Simple Candlestick Strategy For Beginners
Copyright © Trading Walk   Privacy    Terms    Disclaimers    Contact
Trading Walk Facebook
Trading Walk Instagram
Trading Walk YouTube
© Trading Walk    Privacy    Terms    Disclaimers    Contact